Thank you. These replies are helpful.

Retirement plans have templates for lawyers to follow in order to draft a QDRO. There is precise language needed in the QDRO for the plan to accept the order. Do not allow your lawyer to draft the order themselves or you will be paying to have it redone.

Also, the SAHP’s lawyer should be contacting the plan administrator to notify them of the pending divorce. The administrator will put a hold on the account so that the account owner does not try to take a loan, hardship or other distribution.

Make sure you find a lawyer that specializes in these.


http://www.pensionrights.org/publications/fact-sheet/i%E2%80%99m-getting-divorced-what-qualified-domestic-relations-order-and-why-should-

QDRO. If you do it right, no taxes owed.

What happens to breadwinner’s 401k? If it is divided between spouses, do they have to pay taxes on the money the same as they would for withdrawing it before retirement age under other circumstances, or is it possible avoid a penalty for early withdrawal if divorce is the reason why the money is being taken out? I’m in MD.