Divorce and the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan: Understanding Your QDRO Options

Introduction

When you’re going through a divorce, dividing retirement assets can be one of the most complicated and stressful parts of the process. If one of the spouses participates in the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan, a Qualified Domestic Relations Order (QDRO) will likely be required to divide the account legally and without tax penalties. This article explains what divorcing spouses need to know about dividing this specific plan, including special considerations unique to profit sharing plans.

Plan-Specific Details for the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan

Here’s what we know about this specific retirement plan:

Plan Name: The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan
Sponsor: Unknown sponsor
Plan Type: Profit Sharing Plan (General Business)
Organization Type: Business Entity
Active Status: Yes
Address: 1431 PREMIER DRIVE
Established Date: January 1, 1968
Plan Year Coverage: January 1, 2024 – December 31, 2024
Other Data: EIN and Plan Number unknown at this time (required for QDRO submission)

Because this plan is employer-sponsored and classified as a profit sharing plan, it operates by allowing discretionary employer contributions and may also allow employee elective deferrals if it’s combined with 401(k) features. These structural elements affect how benefits should be allocated during divorce.

What Is a QDRO and Why Do You Need One?

A QDRO is a legal order following a divorce or legal separation that tells a retirement plan administrator how to pay a portion of a participant’s account to their former spouse (known as the alternate payee). Without a QDRO, the plan administrator cannot legally make this division, and if funds are withdrawn without one, it could result in taxes and penalties.

For the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan, a properly prepared QDRO is required to divide the account according to the divorce decree, ensure compliance with federal law, and protect the non-employee spouse’s rights.

QDRO Drafting Considerations for Profit Sharing Plans

Employer vs. Employee Contributions

One of the first things we evaluate with profit sharing plans is how the account has been funded. In this type of plan, the employer typically contributes, but sometimes the plan may also accept employee elective deferrals, especially if it’s combined with a 401(k) component.

For QDRO purposes, it’s critical to define which part of the account is being divided. Most QDROs either divide the total account balance as of a certain date or award a flat dollar amount. But in some cases, it’s appropriate to divide only employer contributions—or only vested amounts.

Vesting Schedules

Profit sharing plans often include a vesting schedule. That means the employee must work for the company for a certain number of years before they earn full rights to employer contributions. Any unvested funds as of the date of divorce are not typically payable to the alternate payee.

When preparing the QDRO, we confirm whether vesting schedules are in place and how much of the account was vested on the relevant division date. The unvested portion is usually forfeited if the employee leaves the company before full vesting, and we make sure that’s clearly reflected in the QDRO language.

Handling Loan Balances

Loans from retirement plans can complicate QDROs. Many participants borrow from their profit sharing or 401(k) accounts. If there’s an outstanding loan balance within the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan, the QDRO must clarify how that loan affects the value of the account being divided.

There are generally two options:

Exclude the loan from the division entirely
Include the loan as part of the value of the account and adjust the award accordingly

This decision can significantly impact the dollar amount each spouse receives, so it’s critical to get it right in the drafting stage.

Traditional vs. Roth Accounts

Some profit sharing plans offer a Roth account option in addition to traditional pre-tax dollars. If both types of funds exist in the account, the QDRO must state how each will be treated. Roth accounts have very different tax consequences, especially for the receiving spouse.

At PeacockQDROs, we always request plan statements showing the breakdown and coordinate with both spouses (and their attorneys) on how the division should apply to Roth and non-Roth portions.

QDRO Process with the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan

Step 1: Get Plan Documents and Confirm Details

We start every QDRO by gathering essential plan information, including:

Summary Plan Description (SPD)
Plan number and EIN
Account statements

The plan number and EIN are not currently public for this plan, so you or your attorney will need to request them from the plan administrator. Without these numbers, the QDRO cannot be properly submitted or implemented.

Step 2: Draft the QDRO

We draft the order based on your divorce judgment and the plan’s specifications. With profit sharing plans like this one, we pay special attention to language around vesting, loans, timing, and account types. We also address how investment gains and losses apply between the division date and distribution.

Step 3: Obtain Plan Preapproval (if allowed)

Some plans permit QDRO pre-approval before court filing. If the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan administrator allows this step, we highly recommend it. It ensures the QDRO complies with their internal procedures and avoids rejection post-filing.

Step 4: Court Filing

Once approved (or ready for filing), the QDRO must be signed by the judge to become a valid court order. This step must follow local court procedures and often requires coordination between attorneys or parties.

Step 5: Submission and Follow-Up

After obtaining the signed order, we submit it to the plan administrator and follow up until it’s fully processed and benefits are distributed. At PeacockQDROs, we handle this entire process—from start to finish—making it one less thing for you to worry about during your divorce.

Why Choose PeacockQDROs

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. Our team is experienced in handling plans like the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan, and we’re here to make sure your divorce doesn’t leave you without your rightful portion of retirement assets.

For a deeper look at how we work, check out these helpful resources:

Final Thoughts

If you or your former spouse has an account in the The Orthopaedic and Fracture Clinic, P.a. Profit Sharing Plan, don’t wait to get the QDRO process started. Timing and accuracy are everything when it comes to dividing retirement accounts. Let experts guide you, protect your interests, and make sure the division is legally and financially sound.

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 The Orthopaedic and Fracture Clinic, P.a. Profit Sharing 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.