If you’re getting divorced and one of you has retirement savings in the Savings Incentive and Profit Sharing Plan for Employees of the Hobby Lobby Group, it’s important to know how to divide those benefits properly. This specific plan is a profit sharing retirement plan, which adds a few twists to the typical QDRO process. Whether you’re the employee-participant or the spouse, making sure your Qualified Domestic Relations Order (QDRO) is done right can make a big difference in what you end up with.
At PeacockQDROs, we’ve completed many QDROs. We take care of the full process—from drafting and court filing to working with the plan administrator. That means you won’t be left trying to figure it out alone. Below, we explain what you need to know to divide the Savings Incentive and Profit Sharing Plan for Employees of the Hobby Lobby Group correctly during your divorce.
Before we go into the QDRO process, let’s look at the basics of this retirement plan:
This plan likely includes both traditional and Roth contributions, a vesting schedule for employer contributions, and possibly participant loan balances. Each of those features needs to be addressed in a QDRO.
Unlike pension plans, where payments are based on formulas, profit sharing plans are account-based. The balance in the plan can include:
In this kind of plan, you’ll need to carefully identify what portion of the account should go to each spouse and what rules apply to each part.
Most QDROs divide the account using either a percentage (such as 50% of the marital portion) or a fixed dollar amount. Be clear on which method you want to use. If the participant’s account has changed significantly in value since separation, the chosen method can make a big difference.
This plan probably has a vesting schedule for employer contributions. That means if the participant leaves Hobby Lobby before becoming fully vested, part of the employer contributions could be forfeited. The QDRO should specify that the non-employee spouse receives a portion only of the vested balance—unless the parties agree otherwise.
If the participant borrowed money from their account before the QDRO, the loan isn’t available to divide. You can’t split money that’s not there. However, you can include language stating whether the non-employee spouse should receive a share of the pre-loan balance or simply a share of what’s currently available. Be cautious—plan administrators often deduct loan balances before calculating the spouse’s share unless told otherwise.
The plan may allow both Roth and traditional contributions. These have different tax treatments. A QDRO should say whether the alternate payee receives their share proportionally across account types or only from one type. If that’s not clear, the administrator might just pick a method, which could have unintended tax consequences.
The Savings Incentive and Profit Sharing Plan for Employees of the Hobby Lobby Group is sponsored by a corporation operating in the General Business sector. Corporate plans are usually administered by third-party recordkeepers (like Fidelity, Vanguard, or Principal). These administrators often have specific language they want in your QDRO—and some offer optional pre-approval processes.
At PeacockQDROs, we check whether pre-approval is available for every plan we handle. That’s part of why we have near-perfect reviews. You don’t want your QDRO rejected because the language is “non-standard.”
The steps typically look like this:
Our clients never have to figure all of this out alone. Learn more about QDRO timeframes here:QDRO timeline factors.
Unfortunately, we’ve seen too many people make mistakes when trying to split a plan like this one. Common errors include:
To avoid these and other issues, check out our article oncommon QDRO mistakes.
There are a few final tips when dividing assets in the Savings Incentive and Profit Sharing Plan for Employees of the Hobby Lobby Group:
The plan administrator may require their own QDRO packet or cover sheet. If you’ve received any of these documents from Hobby Lobby or their recordkeeper, share them with your QDRO attorney during the drafting process.
At PeacockQDROs, we do QDROs the right way. We don’t just hand you a document—we take you from start to finish:
We maintain near-perfect reviews and a proven track record. See more about our services here:QDRO Help.
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 Savings Incentive and Profit Sharing Plan for Employees of the Hobby Lobby Group, 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.
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 →
