For the main part QDROs apply to both defined contribution plans (savings plans, 401(K) plans, 403(B) plans et cetera) and defined benefit plans (classic pensions). QDROs are not necessary to divide civil service or DFAS (US Navy, Defense et cetera). At the same time, the administrators of the latter plans (OPM and DFAS) require very specific language in their orders.

Some knowledge is also required of survivorship annuities and benefits.

While it is possible for laypersons to develop property settlements, parenting plans, and support orders, retirement benefit division is perhaps the most mine-laden area of property division.

results may be catastrophic where delays exist
as to when these orders should be prepared. Generally - and almost without exception - these orders should be prepared as soon as possible - before a divorce and well before a death, or subsequent remarriage.

other compelling questions about retirement plans
Many feel special attachment to an employment-related benefit and negotiate a trade for a liquid asset in exchange for a 100 per cent award of the community asset in the retirement plan. This so-called 'house for pension' swop is generally frowned upon and disfavored because such awards do not apportion risk and tax consequences equally. Yet, many insist. This is a key area for financial and legal advice. ■
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