Introduction
Dividing retirement accounts in divorce can be tricky—especially when one of those accounts is a 401(k) like the Sp-hs, LLC 401(k) Compass Retirement Plan. Mistakes in this stage can lead to delays, unintended tax consequences, or even loss of benefits. If you’re going through a divorce and your spouse participates in this plan, or you do, you’ll need a Qualified Domestic Relations Order (QDRO) to divide it properly.
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order—we file it with the court (when needed), follow up with the court clerk, and submit it to the plan administrator. We’re your partner through the whole process. This article will guide you through the QDRO process for dividing the Sp-hs, LLC 401(k) Compass Retirement Plan in a divorce and highlight some plan-specific issues you should consider along the way.
Plan-Specific Details for the Sp-hs, LLC 401(k) Compass Retirement Plan
Before drafting your QDRO, it’s essential to know the specific plan details. Here’s what we know about the Sp-hs, LLC 401(k) Compass Retirement Plan:
- Plan Name: Sp-hs, LLC 401(k) Compass Retirement Plan
- Sponsor: Sp-hs, LLC 401(k) compass retirement plan
- Address: 20250502111911NAL0004539377001, effective as of January 1, 2024
- Employer Identification Number (EIN): Unknown (will be required at submission)
- Plan Number: Unknown (also required at submission)
- Industry: General Business
- Organization Type: Business Entity
- Plan Status: Active
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Assets: Unknown
Since the EIN and plan number are currently unknown, you or your attorney will need to obtain them from the plan sponsor or administrator before the QDRO can be finalized and submitted. These identifiers are required for plan approval.
Why You Need a QDRO
A QDRO is the legal tool that allows retirement benefits to be divided without triggering taxes or early withdrawal penalties. If the plan participant is active in the Sp-hs, LLC 401(k) Compass Retirement Plan and their spouse is entitled to a portion of that account, the QDRO is how that portion is legally and securely transferred.
Key Issues with 401(k) Division in Divorce
401(k) plans come with a few tricky elements that must be addressed in the QDRO. Here’s what to watch out for when dividing the Sp-hs, LLC 401(k) Compass Retirement Plan.
1. Employee vs. Employer Contributions
The first step is identifying how much of the account is marital versus separate. Contributions made before marriage are usually the participant’s separate property. Most importantly, employer contributions often carry vesting schedules. That means the participant may not be fully entitled to all employer-matched funds at the time of divorce.
Any unvested employer contributions must be excluded from the alternate payee’s share in the QDRO. We can include language that states only the vested portion will be divided as of the assignment date.
2. Vesting Schedules and Forfeitures
Because this is a business entity in a general business industry, employer matching contributions are common, and they’re often tied to years of service. Those funds may be partially or fully unvested. If the employee were to separate from the company before full vesting, some of the balance could be forfeited.
The QDRO should reflect this and make it clear how to handle any changes due to vesting after the divorce date. At PeacockQDROs, we include protective provisions addressing these possibilities.
3. Outstanding 401(k) Loans
If the plan participant has a loan against their Sp-hs, LLC 401(k) Compass Retirement Plan, it’s not considered part of the distributable balance—yet it reduces the participant’s “true” value.
You’ll need to decide whether the loan balance should reduce the distributable share or be excluded entirely. This should be negotiated in the divorce and clearly addressed in the QDRO. If this is not handled correctly, the alternate payee may receive less than expected or even inadvertently take on part of a loan obligation they never agreed to.
4. Roth vs. Traditional Subaccounts
Many modern 401(k) plans include both traditional (pre-tax) and Roth (after-tax) subaccounts. These are taxed very differently upon distribution.
Your QDRO needs to state whether the alternate payee’s portion comes from the traditional account, the Roth, or proportionately from both. At PeacockQDROs, we always ask for the Roth status before finalizing the draft to avoid tax consequences that could impact either party.
Step-by-Step: QDRO Process for the Sp-hs, LLC 401(k) Compass Retirement Plan
Step 1: Obtain Plan Documents
Ask the plan sponsor, Sp-hs, LLC 401(k) compass retirement plan, for the Summary Plan Description and the QDRO procedures. These tell us any formatting or language preferences the administrator requires.
Step 2: Provide Value Date and Division Terms
We’ll need the agreed-upon date for division—commonly called the “Assignment Date” or the “Valuation Date.” From there, decide whether the alternate payee gets a set dollar amount or a percentage of the account as of that date.
Step 3: Draft and Pre-Approval
At PeacockQDROs, we always recommend submitting a draft to the plan administrator for pre-approval before you get a judge to sign the order. Why? Because it avoids costly mistakes and gets your QDRO accepted faster later.
Step 4: Court Filing
Once pre-approved, we get the court’s signature on the QDRO. Different states and counties have different filing procedures, which we handle for you.
Step 5: Final Submission and Implementation
We submit the signed QDRO to the plan administrator for final review and implementation. We also follow up and troubleshoot any issues that arise post-submission. Most law firms stop at drafting, but we don’t. That’s what sets PeacockQDROs apart.
Timing and Common Mistakes
Some QDROs can be done in weeks—others take several months. Learn about the factors that affect QDRO timing in our guide, 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Also check out our article on Common QDRO Mistakes to avoid issues like incorrect plan naming, omitted loan balances, and failing to address Roth subaccounts. These are exactly the type of issues that can delay or derail the division of the Sp-hs, LLC 401(k) Compass Retirement Plan.
Why Work With PeacockQDROs
Most legal forms or template services stop after they hand you the draft. That’s not us. At PeacockQDROs, we’ve completed thousands of QDROs for real people dealing with real courts and real plan administrators. We handle every stage—including plan communication and follow-up—so you’re not left guessing what to do next.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. If you’re divorcing someone with a Sp-hs, LLC 401(k) Compass Retirement Plan—or if you’re the plan participant yourself—don’t take chances. Get it done right the first time.
Learn more here: https://www.peacockesq.com/qdros/
Final Thoughts
Dividing the Sp-hs, LLC 401(k) Compass Retirement Plan in divorce requires attention to contribution types, vesting rules, loan balances, and tax structure. Whether you’re negotiating in mediation or finishing your divorce in court, a valid QDRO is the critical step to protect your share—or ensure clarity for both parties down the road.
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 Sp-hs, LLC 401(k) Compass Retirement 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.