Importance of Separation Agreement Language
(For Those Who Don't Prepare
QDRO at Divorce)
With QDROs in existence for
over fifteen years now, there really is no excuse for not
preparing the QDRO concurrently with the divorce proceeding.
As the late coach Woody Hayes said about his Ohio State football
team when defending his "three yards and a cloud of dust"
mentality, "If you throw the football, three things can
happen, and two of them are bad." Of course, he was referring
to the possibility of an incompletion or interception. Unfortunately,
the same logic applies to QDROs--If you do not prepare the
QDRO at the same time as the divorce or include comprehensive
QDRO-type language in the separation agreement, many things
can happen and most of them are bad. For example, if a QDRO
is not drafted and approved by the company coincident with
or immediately after the divorce, the nonparticipant spouse
- lose all of her pension if the
- lose rights to pre-retirement
- lose rights to "separate
interest" lifetime pension if participant retires
- lose rights to "coverture-based"
- lose rights to early retirement
- miss months or years of pension
payments if participant retires unbeknownst to
Don't fall into the malpractice trap of
not preparing your QDRO at the time of divorce. Let QDRO
Consultants Co. assist you with your domestic relations
practice. Call us toll-free at (800) 527-8481.