Protecting Your Retirement Interests in Divorce
Dividing retirement assets in a divorce can get complicated—especially when one or both spouses have a 401(k). If you or your spouse have benefits in the Stonehenge 401(k) Plan, proper planning with a Qualified Domestic Relations Order (QDRO) is critical. Without one, you could lose out on what you’re rightfully owed under the divorce judgment. In this article, we’ll walk you through how to divide the Stonehenge 401(k) Plan through a QDRO accurately and efficiently.
Plan-Specific Details for the Stonehenge 401(k) Plan
Before drafting a QDRO, it’s important to understand the specific characteristics of the retirement plan you’re dealing with. Here’s what we know about the Stonehenge 401(k) Plan:
- Plan Name: Stonehenge 401(k) Plan
- Sponsor: Stonehenge of orem LLC
- Address: 36S 400W SUITE 101
- Plan Years: 2011-01-01 to 2024-12-31
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- EIN and Plan Number: Unknown (needed for QDRO submission—more on that below)
Since this is a 401(k) plan for a General Business, it likely includes a mix of employee deferrals and employer matching contributions. Successful division through a QDRO means understanding how to address multiple account types and the plan’s internal rules.
Understanding QDROs and 401(k) Plans
A Qualified Domestic Relations Order (QDRO) is a legal order that allows a retirement plan to officially divide benefits between a participant and an alternate payee (often a spouse or former spouse) as part of a divorce.
Without a QDRO, the Stonehenge 401(k) Plan cannot legally pay benefits to anyone other than the plan participant. Even if your divorce judgment says you’re entitled to a portion of the account, the plan will ignore it unless a valid QDRO is in place.
Key 401(k)-Specific Issues to Address in Your QDRO
Every 401(k) plan requires careful treatment of several key issues. For the Stonehenge 401(k) Plan, here are the areas your QDRO must address:
Employee and Employer Contributions
401(k) accounts typically contain both employee deferrals and employer matching or profit-sharing contributions. The QDRO should clearly state whether the award includes only employee contributions or both employee and employer contributions.
Additionally, you’ll want to define whether the split is:
- A fixed dollar amount
- A percentage of the account balance as of a certain date
- Subject to investment gains and losses from the division date to the date of distribution
Vesting Schedules and Forfeitures
Employer contributions may be subject to vesting. If the plan participant was not fully vested at the time of separation or divorce, the alternate payee may not be entitled to the full balance. The QDRO should take into account the participant’s vested percentage as of the valuation date.
Unvested amounts are usually forfeited unless the participant stays employed long enough after divorce to vest fully. If your division date is before full vesting, this distinction matters.
Loan Balances and Repayments
Many employees borrow from their 401(k) accounts. The Stonehenge 401(k) Plan may have outstanding loans against it. If the account includes an active loan, the QDRO should clarify:
- Whether the loan is deducted from the account before division
- Whether the alternate payee assumes any portion of the repayment obligation
In most cases, loan balances are considered part of the participant’s share—not divided with the alternate payee—but the language matters greatly.
Roth vs. Traditional Accounts
Modern 401(k) plans often include both traditional (pre-tax) and Roth (after-tax) subaccounts. Your QDRO needs to distinguish which account types are involved in the split.
Transferring Roth funds into a non-Roth account (or vice versa) can have serious tax consequences, so your order must be precise. If you’re receiving funds, make sure your receiving account can accept both types of contributions if needed.
What You Need to Provide for a Valid QDRO
The key pieces of information required to complete a QDRO for the Stonehenge 401(k) Plan include:
- Plan name: Stonehenge 401(k) Plan
- Plan sponsor: Stonehenge of orem LLC
- Employer Identification Number (EIN): Must be provided (will be required by the administrator)
- Plan Number: Needed to identify the plan in official filings
- Participant’s identifying information
- Exact language for the amount to be awarded
Both the plan EIN and Plan Number are required to make sure your order is processed by the correct administrator. Although this info is not always available online, it can be obtained from plan statements or directly from Stonehenge of orem LLC.
How QDROs Are Handled for Business Entity Plans
Since Stonehenge of orem LLC is a Business Entity—not a public employer or government agency—it’s governed under ERISA, making QDROs applicable. But each business-administered plan can have its own rules for processing QDROs, preapproval, and payment procedures.
Some private business plans outsource their administration to a third-party recordkeeper, which means your QDRO may require preapproval from firms like Fidelity, Principal, or Vanguard. Timing and procedures can vary greatly, which is why careful drafting and follow-up is so important.
How Long Will the QDRO Process Take?
Your timeline depends on:
- How quickly Stonehenge of orem LLC (or its plan administrator) reviews QDROs
- Whether the order needs preapproval
- Court processing timeframes
- Document accuracy
- Plan distribution schedules
You can read more about factors affecting timing here: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Why Mistakes Happen — And How to Avoid Them
Thousands of QDROs are rejected every year due to avoidable errors—like failing to mention loan offsets, using vague dates, or ignoring Roth vs. traditional distinctions. You’ll find some of the most common problems we’ve encountered here: Common QDRO Mistakes.
If your QDRO for the Stonehenge 401(k) Plan fails to meet the plan’s internal review standards, your benefits could be delayed for months—or worse, denied altogether.
How PeacockQDROs Can Help
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. Start here for more helpful insights: QDRO Overview.
Final Thoughts
The Stonehenge 401(k) Plan has features—like potential vesting schedules, possible loan balances, and both Roth and traditional contributions—that make QDRO drafting more nuanced. If you’re trying to divide this plan in divorce, make sure your QDRO is specific, accurate, and plan-compliant. Anything short of that can cause long delays, disputes, or lost retirement funds.
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 Stonehenge 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.