Domestic Relations Order (DRO)
A court order that divides retirement plan benefits between divorcing spouses. A Qualified Domestic Relations Order (QDRO) is required to divide employer-sponsored retirement plans.
Understanding Domestic Relations Order (DRO)
A QDRO is a specific type of domestic relations order that meets ERISA requirements and directs a retirement plan administrator to pay a portion of the plan participant's benefits to the alternate payee (the ex-spouse). QDROs are required for 401(k)s, pensions, and other employer plans. They must be approved by both the court and the plan administrator. Without a properly drafted QDRO, the retirement plan cannot distribute funds to the non-employee spouse. QDRO preparation typically costs $500-$2,000 and should be handled by a specialist to avoid costly errors.
Real-World Examples
A QDRO is filed to transfer 50% of the husband's 401(k) balance — $150,000 — to the wife's IRA without triggering taxes or penalties.
Related Terms
Any property or item of value owned by either or both spouses that is subject to division in a divorce. Assets include real estate, bank accounts, investments, retirement funds, businesses, and personal property.
Equitable DistributionA property division system used by most states where marital assets and debts are divided fairly, though not necessarily equally, based on multiple factors.
DecreeThe final court order that officially ends a marriage. Also called a divorce decree, final judgment, or judgment of dissolution of marriage.
Related Guides
Have Questions About Domestic Relations Order (DRO)?
Our AI advisor can explain how domestic relations order (dro) applies to your specific situation — free, private, and available 24/7.
Ask About Domestic Relations Order (DRO)Was this helpful? Help us keep it free.
divorce911.ai is funded entirely by donations. Every dollar keeps the AI assistant and 1,700+ guides free for people in crisis.
Know someone going through a divorce? This could help them.
This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.