Introduction
Dividing retirement assets in divorce can be one of the most challenging parts of the process. If you or your spouse has a retirement account through the Absolute Software, Inc.. 401(k) Plan, you’ll likely need a Qualified Domestic Relations Order (QDRO) to legally split those funds. A QDRO ensures that the division complies with both federal retirement law and the specific rules set by the plan’s administrator.
At PeacockQDROs, we’ve completed thousands of QDROs, and we understand that handling retirement division is more than drafting a document—it’s a detailed legal and financial process that must be done correctly. In this guide, we’ll walk you through what makes dividing the Absolute Software, Inc.. 401(k) Plan unique and what divorcing couples should keep in mind when drafting a QDRO for this specific plan.
Plan-Specific Details for the Absolute Software, Inc.. 401(k) Plan
- Plan Name: Absolute Software, Inc.. 401(k) Plan
- Sponsor: Absolute software, Inc.. 401(k) plan
- Address: 11401 Century Oaks Terrace
- Plan Status: Active
- Industry: General Business
- Organization Type: Corporation
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Plan Number: Unknown (must be requested during the QDRO process)
- Employer Identification Number (EIN): Unknown (also required as part of the QDRO documentation)
Because this plan operates in the General Business sector and is structured as a corporation’s 401(k), certain characteristics are common—like employer matching contributions, vesting schedules, and possible Roth contribution options. These features must be carefully reviewed in the QDRO process to avoid costly mistakes.
What Is a QDRO?
A QDRO (Qualified Domestic Relations Order) is a court order required to divide qualified retirement plans such as 401(k)s between divorcing spouses. Without a QDRO in place, the non-participant spouse (called the “alternate payee”) has no legal claim to benefits under the plan, even if the divorce judgment says they are entitled to a portion.
Why a QDRO Is Necessary for the Absolute Software, Inc.. 401(k) Plan
The Absolute Software, Inc.. 401(k) Plan is a tax-qualified plan under ERISA (Employee Retirement Income Security Act), which means federal law prevents plan administrators from assigning benefits to anyone other than the participant—unless a valid QDRO is in place. For divorcing spouses, the QDRO is the official vehicle to enforce the division ordered by the family court.
Dividing Participant and Employer Contributions
Employee Contributions
This refers to the percentage the employee directly contributes from their paycheck. These amounts are always 100% vested, so they can be assigned to the alternate payee under a QDRO with no problem.
Employer Contributions
This is where things get a little trickier. Many corporate plans like the Absolute Software, Inc.. 401(k) Plan implement a vesting schedule for matching contributions, often over several years. If an employee hasn’t met the full vesting schedule, part of those employer contributions may be forfeited when leaving the company—or may not be shareable upon divorce.
In the QDRO, it’s critical to spell out whether the alternate payee is entitled only to vested amounts or if they’ll share unvested benefits that may later vest. At PeacockQDROs, we help identify these key issues before filing to avoid future disputes or denial by the plan administrator.
Loan Balances and Impact on Division
Many 401(k) plans—including the Absolute Software, Inc.. 401(k) Plan—allow participants to take loans against their balance. If there’s an outstanding loan at the time of the divorce, it’s essential to clarify how it should be treated in the QDRO.
You’ll need to address:
- Whether the loan amount is subtracted from the divisible balance
- Whether the alternate payee will share in repaying the loan
- What happens if the loan goes into default
Our experience shows that handling loan provisions incorrectly is a frequent source of delayed processing. See our breakdown of common QDRO mistakes to avoid these missteps.
Traditional vs. Roth 401(k) Contributions
If the Absolute Software, Inc.. 401(k) Plan includes both traditional pre-tax and Roth after-tax employee contributions, the QDRO must specifically state how each type of account is divided. This distinction matters because:
- Traditional 401(k): Distributions are taxable when withdrawn.
- Roth 401(k): Qualified distributions are tax-free.
A properly prepared QDRO should not only divide the accounts proportionately but also preserve the tax character of each portion. Failing to do so can create unexpected tax consequences for the alternate payee later on.
Time Considerations: How Long Will It Take?
People often assume once the divorce is final, the funds will move quickly. In reality, it can take months to get a QDRO fully processed if done incorrectly. Turnaround time depends on several factors. We explain them in our article on the five timing factors for QDRO completion.
At PeacockQDROs, we handle every step—from drafting the QDRO and seeking preapproval to court filing and final submission to the administrator—so your order doesn’t end up stuck in limbo.
What Happens After the QDRO Is Submitted?
Once the QDRO for the Absolute Software, Inc.. 401(k) Plan is approved and finalized:
- The plan administrator will formally recognize the alternate payee and create a separate account in their name.
- The alternate payee may choose to leave funds in the plan, roll them over to an IRA, or request a distribution (subject to taxes depending on plan structure).
- Future vesting or loan repayments remain the responsibility of the parties as determined by the QDRO language.
One of the unique benefits of working with us at PeacockQDROs is that we don’t leave you guessing. We follow through until your QDRO is processed and assets are divided properly.
Final Thoughts
The Absolute Software, Inc.. 401(k) Plan includes many typical features of corporate-sponsored retirement plans—employee and employer contributions, possible Roth components, and loan provisions—all of which require careful handling in a divorce. A cookie-cutter QDRO just won’t cut it here.
At PeacockQDROs, we’ve completed thousands of 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.
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 Absolute Software, Inc.. 401(k) Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.