Introduction
Dividing a 401(k) plan in a divorce involves more than just agreeing on a number. If your spouse has retirement savings in the Chapter 401(k) Plan sponsored by Memoir, Inc., you’ll need to use a Qualified Domestic Relations Order (QDRO) to divide those assets legally and correctly. This article walks you through how to handle the Chapter 401(k) Plan in a divorce using a QDRO, highlighting key plan-specific considerations and common 401(k) complications you’ll want to handle carefully.
Plan-Specific Details for the Chapter 401(k) Plan
Here’s what we know about the plan involved in your case:
- Plan Name: Chapter 401(k) Plan
- Sponsor: Memoir, Inc.
- Address: 20250417220817NAL0002090609075, 2024-01-01
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Though details like the EIN and Plan Number are currently not identified, you’ll absolutely need them when drafting and submitting the QDRO. If your attorney or the plan participant doesn’t have this data, the plan administrator at Memoir, Inc. can usually provide it upon request.
What Is a QDRO and Why Is It Needed?
A Qualified Domestic Relations Order (QDRO) is a court order that allows a retirement plan to legally divide assets between former spouses during divorce. Without a QDRO, the plan cannot pay any portion of the employee’s 401(k) to their former spouse, even if the divorce decree says it should. For the Chapter 401(k) Plan, this QDRO needs to be precise—it must match the plan’s rules, legal regulations, and IRS guidelines.
Key Issues When Dividing the Chapter 401(k) Plan
Employee vs. Employer Contributions
401(k) accounts like the Chapter 401(k) Plan often include both employee deferrals (money the participant contributed) and employer contributions (such as matching or profit-sharing funds). These two sources can have different rules when it comes to vesting and availability. Employee contributions are always fully owned by the participant, but employer funds may not be 100% vested.
Vesting and Forfeited Amounts
One of the most easily overlooked details in a QDRO is the vesting schedule. If Memoir, Inc. applies a standard graded vesting (for example, 20% per year over five years), a portion of the employer contributions may not be claimable by the alternate payee (the non-employee spouse) unless the participant is fully vested. A well-crafted QDRO can specify whether the alternate payee receives only the vested balance or a portion of unvested amounts too (which could later be forfeited).
Handling Loan Balances Within the Chapter 401(k) Plan
Another vital area to address is whether there’s a loan against the participant’s account. A 401(k) loan reduces the account balance available for division. The QDRO should clearly specify whether the loan is to be deducted:
- Before the division (reducing the full balance first, then dividing)
- After the division (recipient gets a share of the full balance, loan considered only on what’s left)
This choice can significantly affect how much the alternate payee receives.
Roth vs. Traditional 401(k) Accounts
If the Chapter 401(k) Plan includes a Roth 401(k) portion, this must be handled separately in the QDRO. Roth 401(k) contributions are made with after-tax dollars and grow tax-free, while traditional 401(k) funds are taxed upon withdrawal. A QDRO should specify whether the transfer includes Roth, traditional, or both types of funds—and in what proportion. This is crucial for avoiding tax complications later on.
QDRO Drafting: Get It Right the First Time
QDRO language must match the Chapter 401(k) Plan’s guidelines. Otherwise, the plan will reject it, delaying distribution and causing more court time and cost. This is why working with specialists like us at PeacockQDROs makes a difference.
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.
Required Documentation to Start the QDRO Process
For the Chapter 401(k) Plan, you’ll need the following details:
- Participant’s most recent quarterly or year-end statement
- Contact information for Memoir, Inc., the plan sponsor
- The plan’s Summary Plan Description (SPD) if available
- The Plan Number and EIN once identified
Even basic account statements can reveal whether your case involves loan balances, Roth accounts, or other asset types that your QDRO must address.
Common Mistakes When Dividing 401(k) Plans in Divorce
Too often we see divorcing couples—or even attorneys—make these avoidable errors:
- Not specifying what to do with loan balances
- Ignoring Roth vs. traditional distinctions
- Failing to address unvested employer contributions
- Missing the correct legal or plan-identification info like EIN or Plan Number
Read more about common QDRO mistakes here.
How Long Does This Process Take?
QDRO timing can vary depending on the court, state, and plan administrator. For a plan like the Chapter 401(k) Plan, timelines may be affected by administrative delays or lack of preapproval protocol.
We broke down the five main factors affecting how long QDROs take in this helpful article.
Work with a QDRO Professional Who Knows 401(k) Plans
401(k)s are unique—especially when they include employer match contributions, loan offsets, and Roth segments. A skilled QDRO attorney ensures the final order reflects your agreement and complies with plan procedures. We don’t leave you hanging with just a document. From drafting to distribution, PeacockQDROs is with you every step of the way.
Need Help? Start Here
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 Chapter 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.