Dividing retirement accounts can be one of the trickiest parts of a divorce—but it doesn’t have to be. If you or your spouse have an account under the Sea Change Therapy 401(k) Plan, you’ll need to understand what a Qualified Domestic Relations Order (QDRO) is, how it works, and what specific steps apply to this particular plan. At PeacockQDROs, we’ve helped thousands of people successfully split retirement accounts like this one, and we’ve seen just about every complication that can arise. Here’s what you need to know.
What Is a QDRO and Why Do You Need One?
A QDRO (Qualified Domestic Relations Order) is a special court order that allows retirement funds governed by ERISA—like 401(k)s—to be divided between divorcing spouses. Without a QDRO, the plan can’t legally transfer funds to anyone other than the plan participant, even if the divorce settlement says otherwise.
For the Sea Change Therapy 401(k) Plan, a QDRO is required if one spouse is receiving a share of the other’s retirement account. A properly drafted QDRO will instruct the plan administrator on how much to give the non-employee spouse (known as the “alternate payee”) and how to structure that transfer.
Plan-Specific Details for the Sea Change Therapy 401(k) Plan
Here’s what we know about the Sea Change Therapy 401(k) Plan, which is critical information when preparing the QDRO:
- Plan Name: Sea Change Therapy 401(k) Plan
- Sponsor Name: Sea change therapy, LLC
- Plan Address: 20250416220520NAL0000125827027, 2024-01-01
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- EIN: Unknown (required for QDRO drafting—can be acquired through plan administrator)
- Plan Number: Unknown (required—typically three digits, obtained from administrator or summary plan description)
- Participants: Unknown
- Plan Year: Unknown
- Effective Date: Unknown
- Assets: Unknown
Because some of this plan information is missing, it’s crucial to contact the plan administrator to request the Summary Plan Description (SPD). This document gives us the precise terms we need to follow when preparing the QDRO.
Key QDRO Considerations for 401(k) Plans
Not all retirement accounts are created equal. 401(k) plans have some specific challenges that you need to be aware of before drafting or approving a QDRO. Here’s what matters in the case of the Sea Change Therapy 401(k) Plan.
1. Employee and Employer Contributions
The plan participant (employee) typically has both employee contributions (deductions from wages) and employer contributions (matching or discretionary). In a divorce, both types of contributions are typically subject to division. However, employer contributions often come with vesting rules—meaning the participant may not own the full amount yet. The QDRO must specify whether to include only vested amounts or some portion of unvested amounts as well.
2. Vesting Schedules
Vesting affects what portion of the employer’s contributions the employee truly owns. If the QDRO includes unvested amounts and those amounts are later forfeited, the alternate payee could receive nothing from that part. It’s essential to draft the order in a way that protects the alternate payee appropriately and clearly spells out what happens if vesting doesn’t occur.
3. Outstanding Loans
If the plan participant has taken a loan against their 401(k)—which is fairly common—that loan reduces the total account balance available for division. QDROs need to clarify whether the alternate payee’s share is calculated before or after subtracting the loan. Most plans default to reducing the balance, but this must be spelled out clearly.
Also, repayment of the loan remains the responsibility of the participant, not the alternate payee.
4. Roth vs. Traditional Accounts
The Sea Change Therapy 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) accounts. These have very different tax consequences, and a well-drafted QDRO must account for that. Transferring Roth funds to a non-participant spouse requires that they go into a Roth account in the alternate payee’s name—to preserve the tax-free status. Mixing Roth and Traditional contributions without clarity can create tax headaches down the road.
The QDRO Process for the Sea Change Therapy 401(k) Plan
The process generally looks like this:
- Gather plan documents, including the SPD and any QDRO guidelines provided by Sea change therapy, LLC or their plan administrator.
- Draft the QDRO in compliance with both the divorce judgment and the specific rules of the Sea Change Therapy 401(k) Plan.
- Submit the draft to the plan administrator for pre-approval (if the plan allows or requires it—some plans don’t offer preapproval).
- Get court approval and a judge’s signature on the QDRO.
- Send the signed order to the plan administrator for final processing and distribution of benefits.
Timing matters. Some QDROs take months if not handled correctly. If you’re wondering what slows things down, check out our resource on 5 key factors that determine QDRO timing.
Common Mistakes to Avoid
We’ve seen many people submit QDROs that get rejected for totally avoidable reasons. These are the most common mistakes:
- Failing to mention whether amounts are before or after loans
- Not specifying how to handle Roth assets
- Omitting what happens to gains or losses during the delay period
- Including unvested contributions without language addressing potential forfeiture
- Sending a QDRO to the court before getting plan administrator input
To avoid these pitfalls, visit our guide on common QDRO mistakes.
Why PeacockQDROs Is Different
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 dividing a massive corporate plan or a small business plan like the Sea Change Therapy 401(k) Plan, you need someone who understands the rules and the real-world execution.
If you’re just starting the QDRO process, our team can help you avoid delays and protect your financial rights. Learn more about our services here: https://www.peacockesq.com/qdros/.
Next Steps: Getting Started on Your QDRO
If you’re dealing with the Sea Change Therapy 401(k) Plan in a divorce, don’t wait until after your divorce is finalized—or worse, until years later. The sooner you get the QDRO in place, the more likely you are to receive your share correctly and without penalty.
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 Sea Change Therapy 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.