Divorce Mediation Blog

Did You Know – A Hidden QDRO Cost

Wednesday, July 22, 2015

We learn something new every day.

Between us, we have drafted agreements, written judgments and crafted awards that required parties to create Qualified Domestic Relations Orders (QDRO’s) to transfer retirement assets after divorce. We always knew well enough to opt for IRA-to-IRA transfers when possible, because can usually be accomplished by authorization letter alone, with no QDRO required. This makes sense because it saves drafting and presentment fees as well as processing time.

Then, recently, we set up a 401k plan for ourselves and read some of the fine print, only to learn that the plan administrator has the right to charge hourly-based fees for QDRO processing. Since we never see the back end of the transaction in any of our clients’ cases, we had no reason to know this; and we wonder how many clients or their lawyers are aware of this, either?

Maybe it is unavoidable, and it may not add up to much; but it is one more reason to look more closely at selecting qualified retirement plans before they are divided if only for cost efficiency.

Who knew?

Get e-mail notifications of new blog posts! Enter email address below.:

Delivered by FeedBurner

other articles

recent posts


family support rehabilitative alimony SJC Obamacare arbitration divorce and family law mediators Chouteau Levine Baseball Self-adjusting alimony orders private dispute resolution DOMA Defense of Marriage Act med/arb alimony statute divorce mediation how baseball arbitration works mediation health insurance family law high-risk methodology divorce arbitration family law arbitrator Levine Dispute Resolution Center LLC divorce mediators special master divorce lawyers annulment facilitated negotiations support orders alimony divorced divorce agreement divorce judgment Massachusetts Alimony Reform Act Massachusetts divorce mediators divorce mediations conciliation medical benefits Massachusetts divorce lawyers dispute resolution Massachusetts alimony Boston Act Reforming Alimony in the Commonwealth General term alimony resolve disputes Same Sex Marriage arbitrators divorce and family law Major League Baseball Arbitration Massachusetts lawyers Alimony Reform Act pre-ARA alimony Family Law Arbitration self-adjusting alimony Matrimonial Arbitration Levine Dispute Resolution lawyer Divorce Agreements family and probate law disputes Levine Dispute Resolutions alimony law litigation traditional negotiations mediator lawyers Cohabitation alimony orders Massachusetts alimony and child support Levine Dispute Resolution Center divorce arbitrator mediators Divorce divorce mediator LDRC mediations disputes IRC §2704 family law arbitrators Massachusetts Lawyers Weekly The Seven Sins of Alimony child support Baseball Players MLB labor agreement family mediation lawyer-attended mediation divorce litigation health coverage divorce arbitrators fraud Baseball Arbitration Uniform Arbitration Act Massachusetts separation arbitrator COLA Child Support Guidelines med-arb divorce process alimony reform legislation family law mediation