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Qualified Domestic Relations Order (QDRO)

Definition - What does Qualified Domestic Relations Order (QDRO) mean?

A Qualified Domestic Relations Order (QDRO) is a court order used in cases of divorce to formally require the pension of one spouse to release half or partial payments to the other spouse at the time of maturity. A QDRO is also used for long-term investments. This order also allows the payments to be designated to another party by the ex spouse of the recipient beneficiary.

Justipedia explains Qualified Domestic Relations Order (QDRO)

A Qualified Domestic Relations Order is used in divorces where the marriage was of a sufficient length or where children are involved to allocate half or a portion of the long-term resources of a spouse to the ex partner. It is one of the most important elements in a divorce settlement where pensions or long-term investments have been paid into and where it would be unduly costly to cash in the asset at the time of the divorce.

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