Congress supports the idea that participants of sponsored retirement plans should not be able to gamble, owe or dissipate retirement funds. This value has a strong social purpose. Congress also protects participants' funds from creditors. Dissipated retirement funds pose a liability to the government.

ERISA qualified plans are governed by a spendthrift or anti-alienation provisions. The 'spendthrift clause' prevents transfer and serves the same purpose as equivalent provisions written into trusts to prevent a prodigal beneficiary from wasting an inheritance. The law restricts participants from being wasteful with their retirement money while at the same time prevents creditors from invasion.

1984 amendments to ERISA, the retirement equity act
An exception to the anti-alienation clause was created in 29 USC 1056(d)(3)(A), the Retirement Equity Act. This provision births QDROs and distinguishes between non-qualified domestic relations orders and qualified domestic relations orders.

and where qdros fit in...
Divorce attorneys must use QDROs to allocate interests in qualified retirement plans under a divorce decree. Most divorce decrees say little or nothing about the division of the asset except that the interest should be allocated to one or the other or divided. Most decrees are silent on survivorship provisions and other key issues, leaving the negotiation of the terms of the QDRO open to more litigation and uncertainty, exacerbated by ignorance and procrastination. This may have extremely negative results when a participant retires, remarries or dies.
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