Divorce and the Faraday and Future Retirement Plan: Understanding Your QDRO Options

Introduction

Dividing retirement assets during a divorce can quickly become complicated, especially when a 401(k) plan like the Faraday and Future Retirement Plan is involved. If you or your spouse work for Faraday future intelligent electric, Inc., it’s crucial to understand how this specific plan behaves under a Qualified Domestic Relations Order (QDRO). A QDRO is required to legally transfer a portion of retirement benefits from one spouse to the other as part of a divorce settlement.

At PeacockQDROs, we’ve completed many QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.

Plan-Specific Details for the Faraday and Future Retirement Plan

Plan Name: Faraday and Future Retirement Plan
Sponsor: Faraday future intelligent electric, Inc.
Plan Type: 401(k)
Address: 18455 S. Figueroa Street
Plan Effective Dates: 2014-12-01 to 2024-12-31
Plan Sponsor EIN: Unknown (required for QDRO form completion)
Plan Number: Unknown (must be obtained during QDRO preparation)
Industry: General Business
Organization Type: Corporation
Status: Active

Although some specifics like the EIN or number aren’t publicly listed, your attorney or QDRO professional can obtain them during the QDRO drafting process. These data points are necessary for accurate order filing.

Why a QDRO Is Required for the Faraday and Future Retirement Plan

Federal law under the Employee Retirement Income Security Act (ERISA) requires that a QDRO be in place for any marital division of a 401(k) plan such as the Faraday and Future Retirement Plan. The QDRO creates a legal right for the non-employee spouse—called the “alternate payee”—to receive their allocated share of benefits.

Without a QDRO, the plan administrator legally cannot divide or distribute funds to the alternate payee, even if your divorce agreement outlines such a division. This is especially important in corporate-sponsored plans like this one.

Dividing 401(k) Assets Under the Faraday and Future Retirement Plan

Employee and Employer Contributions

In most QDROs for 401(k) plans, employee contributions are fully vested and easily divided. However, employer contributions may be subject to a vesting schedule. That means if the plan participant hasn’t worked long enough to meet the vesting requirements, some or all of the employer contributions may not be eligible for division.

Your QDRO must explicitly state whether the alternate payee receives a share of all accounts or just the vested portion, and how forfeited amounts will be handled.

Vesting and Forfeitures

Be cautious about how the plan handles employer matching contributions. If part of the employer match is not yet vested at the time of divorce or QDRO entry, it may revert back to the plan (i.e., be forfeited). This means the alternate payee should not expect to receive that portion unless the QDRO includes specific language making provisions for future vesting (if allowed by the plan).

Loans and Outstanding Balances

If the participant has taken out a loan against the Faraday and Future Retirement Plan, the QDRO needs to specify whether the loan is deducted from the total account value before division or if it’s assigned entirely to the participant’s share. Most QDROs use the account’s net value—subtracting outstanding loans—to calculate division. However, plans differ, so it’s important to confirm this with the administrator.

Roth vs. Traditional 401(k) Accounts

This plan may contain both Roth and traditional sub-accounts, which are taxed differently. Traditional 401(k) funds are tax-deferred, while Roth funds grow tax-free. When dividing assets, it’s crucial to separate these accounts accurately.

For example, if the order doesn’t specify how Roth assets are to be divided, the plan may apply a general percentage that blends pre-tax and post-tax dollars—creating unintended tax consequences for the alternate payee. A properly drafted QDRO ensures each account type is distributed proportionally or separately.

What to Expect During the QDRO Process

Step 1: Drafting the QDRO

The first step is obtaining the plan’s QDRO procedures. Every plan has different rules, even within the standard 401(k) structure. At PeacockQDROs, we start by gathering this internal guidance to ensure compliance. Since the Faraday and Future Retirement Plan is part of a corporation in a general business industry, it’s likely to have unique nuances we must follow.

Step 2: Preapproval (If Offered)

Some plans allow you to submit the QDRO for review before filing it with the court. This “preapproval” step helps avoid rejections or delays. If the Faraday and Future Retirement Plan allows preapproval, we handle that submission for you as part of our full-service process.

Step 3: Court Filing

Once the draft is reviewed and finalized, it must be signed by both parties (where applicable), their attorneys, and then filed with the court. This court-certified order is the only version that the plan will recognize for proceeding with account division.

Step 4: Submission to the Plan and Follow-Up

After court certification, the QDRO must be submitted to the Faraday and Future Retirement Plan’s administrator. Follow-up is often required to confirm receipt, address questions, and ensure proper processing timelines are followed. We manage this entire process so your benefits aren’t delayed.

Common Pitfalls in Faraday and Future Retirement Plan QDROs

Failing to specify how loans are treated in the value calculation
Overlooking Roth vs. traditional account distinctions
Assuming employer contributions are vested when they are not
Lack of clarity on cutoff dates or valuation dates

These mistakes are frequent in 401(k) QDROs. Learn more aboutcommon QDRO mistakes to avoid problems with your division.

Timeline Considerations

Wondering how long it takes? That depends on the court, the plan administrator’s responsiveness, and whether preapproval is offered. See thefive key factors that affect QDRO timing.

Why Choose PeacockQDROs?

Our full-service QDRO support takes the guesswork and stress out of the process. We guide you from start to finish—whether you’re the plan participant or alternate payee. With thousands of processed orders and near-flawless reviews, PeacockQDROs is the trusted name in retirement benefit division.

Want to get started? Visit ourQDRO service page to learn more about what we do and how we can help with the Faraday and Future Retirement Plan or any other plan.

Final Call to Action

If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the Faraday and Future Retirement Plan, contact PeacockQDROs. We focus on QDROs and have successfully processed many orders from start to finish.

Get the answers you need—explore ourQDRO resources orreach out for personalized help if you’re in one of our service states.

Your Attorney

William “Willie” Peacock, Esq.

QDRO & Retirement Division Attorney

Willie has handled hundreds of QDROs, been named as a stipulated or court-appointed expert in hundreds of orders, testified as an expert witness on QDROs and state government pension survivor benefits, and taught CLEs on QDROs, legal ethics, and military pensions. He is a three-time ABA award-winning legal author and secured a victory before the North Dakota Supreme Court. Full bio →

Licensed: CA · NY · NJ · CT · MO · KS · IA · ND

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