Introduction
Dividing retirement accounts during divorce can be one of the most complicated aspects of property division—especially when the account in question includes separate contributions, varying vesting rules, or outstanding loans. If either spouse is a participant in the Spathe Systems LLC 401(k) Plan, you’ll most likely need a Qualified Domestic Relations Order (QDRO) to divide it properly in a divorce. This article covers what you need to know about QDROs, how they apply to this specific retirement plan, and the most common issues we encounter when advocating for clients at PeacockQDROs.
Plan-Specific Details for the Spathe Systems LLC 401(k) Plan
If your divorce involves the Spathe Systems LLC 401(k) Plan, here are the current known plan details that you and your attorney should keep in mind:
- Plan Name: Spathe Systems LLC 401(k) Plan
- Sponsor: Spathe systems LLC 401(k) plan
- Plan Address: 5401 W. Kennedy Blvd. 750
- Plan Coverage Years: 2024-01-01 to 2024-12-31; Effective Date: 2017-01-01
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- EIN: Unknown (required for final QDRO processing)
- Plan Number: Unknown (also required for QDRO submission)
Even though the EIN and Plan Number are currently unknown, they will be required when the QDRO is drafted and submitted. We help clients obtain this information if it’s missing from plan disclosures or participant statements.
Why a QDRO is Necessary for Dividing the Spathe Systems LLC 401(k) Plan
A QDRO is a court-approved order that allows a retirement plan administrator to pay a portion of benefits to someone other than the plan’s participant—usually the former spouse, known as the “alternate payee.” Without a proper QDRO in place, the plan administrator legally cannot distribute 401(k) benefits to the non-employee spouse, even if the divorce judgment says they should.
Key Considerations When Dividing a 401(k) in Divorce
Employee and Employer Contributions
In most 401(k) plans, the participant makes contributions from their paycheck, while the employer may provide a match or profit-sharing contribution. It’s important to distinguish between contributions made by the employee, which are typically fully vested immediately, and employer contributions, which may have a vesting schedule.
Vesting Schedules and Forfeitures
If the participant hasn’t worked for Spathe systems LLC 401(k) plan long enough to be fully vested in the employer contributions, a portion of the account may be unvested. Those unvested portions are forfeited if the participant leaves the company before completing the required vesting period. We ensure that QDROs explicitly distinguish between vested and unvested funds to prevent disputes later.
401(k) Loans and Repayment
If the participant has taken out a loan from their 401(k), the balance of that loan affects the value of the account. A QDRO should address whether the alternate payee will share in the remaining loan liability or be awarded a share of what’s left after subtracting the loan. Plan administrators differ in how they treat loans, so we confirm how the Spathe Systems LLC 401(k) Plan handles this during our QDRO preparation process.
Roth vs. Traditional 401(k) Sub-Accounts
This plan may include both traditional pre-tax contributions and post-tax Roth contributions. These accounts are taxed differently when distributed, and any QDRO needs to clearly specify how each sub-account is divided. We always confirm the account types present and structure the QDRO to maintain tax advantages and compliance.
Steps to Divide the Spathe Systems LLC 401(k) Plan Through a QDRO
Step 1: Obtain Plan Information
We gather the necessary plan statements, summaries, and administrator contact details. Since the EIN and Plan Number are missing, we’ll request them from the plan administrator or through subpoena if needed.
Step 2: Draft the QDRO
At PeacockQDROs, we handle the language, calculations (shared interest or separate interest method), and compliance details. We also confirm details like vesting status, account types, and loan balances.
Step 3: Get Preapproval (If Applicable)
Some plans will review a draft before it’s signed by the court. If the Spathe Systems LLC 401(k) Plan allows that, we’ll work with the administrator to ensure no surprises after the court signs the order.
Step 4: Obtain Court Approval
Once the QDRO is finalized and if preapproved, we’ll help file it with the court to become a valid domestic relations order. The divorce must be finalized before the QDRO can be submitted.
Step 5: Submit to the Plan and Follow Up
After the court signs the QDRO, we submit it directly to the plan administrator for processing. We also confirm the order was accepted and follow up until payments or account transfers are completed.
Common Pitfalls to Avoid
- Failing to specify Roth accounts separately: If a QDRO doesn’t clearly allocate Roth vs. traditional amounts, taxes could be triggered or the administrator might reject it.
- Ignoring loan balances: Make sure loan offsets are properly addressed to avoid inaccurate payments.
- Using boilerplate orders: Each plan is different, and using a generic QDRO from the internet is a recipe for rejection or incorrect division.
To avoid these and other traps, check out our guide on common QDRO mistakes.
PeacockQDROs Handles It All—Not Just the Drafting
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. Whether you’re dealing with employer matches, loans, or Roth allocations, we’ve seen it all and know how to get it done right the first time. Learn more on our QDRO services page.
Timeline Expectations
Clients often ask how long all this takes. The answer depends on a few factors—plan responsiveness, court turnaround time, and whether preapproval is required. For real-world insight, check out our breakdown of the 5 factors that determine how long it takes to get a QDRO done.
Conclusion
If your divorce involves the Spathe Systems LLC 401(k) Plan, getting the details right in your QDRO is crucial. From vesting and loan offsets to Roth components and administrative quirks, every element must be properly addressed—ideally before your divorce is finalized.
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 Spathe Systems LLC 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.