If you’re going through a divorce and your spouse or you have a retirement account under the All Elite Wrestling 401(k) Plan, you might be wondering how to divide it. The right way to handle this kind of division is through a Qualified Domestic Relations Order—or QDRO. As QDRO attorneys who have worked with many divorcing spouses, we can tell you that getting this wrong can cost you more than just time. In some cases, it can cost you a significant portion of your retirement benefit.
Below, we explain how QDROs apply to the All Elite Wrestling 401(k) Plan, highlight common pitfalls, and share key strategies for making sure you get your share—correctly and on time.
Here’s the basic information we have about the plan:
Because this is a 401(k) plan operated by a business entity in the general business sector, the QDRO process will look similar to most private company retirement plans. Even though the sponsor and plan number are not currently known, this information will be required to process your QDRO, so you’ll need to get a copy of the plan’s Summary Plan Description or account statement to fill in these blanks.
A Qualified Domestic Relations Order (QDRO) is a special court order that allows someone other than the account holder—usually an ex-spouse—to receive a portion of a retirement plan like the All Elite Wrestling 401(k) Plan. Without a QDRO, the plan administrator has no legal authority to divide and distribute benefits to anyone other than the named employee.
Your QDRO must clearly spell out:
When dividing a 401(k) like the All Elite Wrestling 401(k) Plan in divorce, it’s not just as simple as splitting the account 50/50. Several technical issues must be handled properly in the QDRO to avoid significant financial consequences.
401(k) accounts often consist of two types of contributions: those made by the employee from their paycheck and those made by the employer as a match or incentive. A QDRO can address both types, but you need to understand what portion of the employer contributions has vested. If the employer’s contributions aren’t fully vested, only the vested portion should be included in your award.
If the employee hasn’t worked long enough to fully own (vest in) the employer contributions, an alternate payee might only be entitled to a portion. Any unvested balance won’t be paid out through a QDRO and is typically forfeited back to the plan. This is a critical point to understand when estimating what you’re entitled to in the division.
If the account holder has taken out a loan against their All Elite Wrestling 401(k) Plan, that loan balance will affect the value of the account. Your QDRO should specify whether the award is based on the gross or net balance of the account (i.e., before or after subtracting the loan). Ignoring this detail can result in mistakes that delay or reduce your payout.
Many 401(k) plans now offer both traditional (pre-tax) and Roth (after-tax) contributions. These have different tax consequences. A QDRO should divide these accounts appropriately and preserve the tax-treatment of the original funds. For example, Roth funds should go to a Roth IRA, not a traditional IRA, to avoid triggering a taxable event.
We’ve seen these errors time and again—and many of them are avoidable with proper guidance:
We strongly recommend reviewing ourCommon QDRO Mistakes Guide before finalizing the order.
Every plan administrator is different, and this plan being under “Unknown sponsor” adds an initial hurdle. Filing and approval can take anywhere from a few weeks to several months. Curious about timing? Visit our article on the5 Factors that Determine QDRO Timelines.
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.
Whether you’re dividing the All Elite Wrestling 401(k) Plan or another type of retirement account, we keep your QDRO from falling through the cracks. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way—with full service from beginning to end.
Want to see how it works? Learn more about our QDRO processhere.
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 All Elite Wrestling 401(k) 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.
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 →
