Divorce and the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust: Understanding Your QDRO Options

Understanding QDROs in Divorce Cases

When a couple divorces, dividing retirement assets is often one of the most complex aspects of the process. If one spouse participates in the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust, those funds may be subject to division through a Qualified Domestic Relations Order (QDRO).

A QDRO is a specialized legal order that allows for the lawful division of retirement plan assets between divorcing spouses without triggering early withdrawal penalties or taxes. For 401(k) plans like the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust, the QDRO must meet certain criteria both federally and under the rules of the specific plan.

Plan-Specific Details for the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust

Here’s what we know about this plan and what you’re working with during QDRO preparation:

Plan Name: Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust
Sponsor: Borregaard usa, Inc.. employees’ 401(k) retirement savings plan and trust
Organization Type: Corporation
Industry: General Business
Status: Active
Address: 20250528140135NAL0004431459001, 2024-01-01
EIN: Unknown (Must be obtained from the plan or employer)
Plan Number: Unknown (Must be confirmed for QDRO documentation)
Plan Year: Unknown
Participants: Unknown
Assets: Unknown

Even without full plan details publicly available, a QDRO can still be prepared. However, extra diligence is needed to confirm specific provisions related to vesting, loan balances, and available account types.

Key Issues to Address in 401(k) Division Through QDRO

The Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust is a defined contribution plan, meaning its balance can fluctuate based on employee and employer contributions, investment choices, and market conditions. Here are some core issues that must be considered during the division process:

Employee and Employer Contributions

It’s critical to define whether both employee and employer contributions are to be divided. Many QDROs specify a percentage or dollar amount from the total plan account, but if you’re only dividing the employee portion or the vested balance, that must be spelled out.

Vesting Schedules and Forfeitures

Employer contributions to the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust may be subject to a vesting schedule. That means only a portion of the employer match may be available for division at the time of divorce. Unvested funds generally stay with the participant. Your QDRO must clearly state whether the division is of “vested” or “total” account balance, or else there’s a risk of post-order disputes.

Loans Against the 401(k)

If the employee has taken a loan from the plan, it complicates matters. Should the loan be factored into the balance available for division? Or should the alternate payee receive their share of the balance as if the loan didn’t exist? These are decisions that must be made in consultation with the divorcing parties and clarified in the order. Keep in mind that the participant—not the alternate payee—remains responsible for repaying any outstanding loan, unless otherwise agreed in court.

Roth vs. Traditional 401(k) Accounts

The Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust may include both traditional pre-tax and Roth post-tax funds. A proper QDRO should instruct the plan administrator to maintain the tax character of the original contributions for the alternate payee. Failing to do so can result in unintended tax consequences or account creation issues.

Drafting the QDRO for Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust

Drafting a QDRO for this plan requires attention to detail, especially since it’s tied to a corporate sponsor in the general business industry. Plans in this category can have standardized document providers but may also have custom rules depending on the employer’s retirement policies.

Required Documentation

To prepare and finalize a QDRO, you’ll need to track down certain pieces of information not publicly disclosed:

Exact Plan Number (usually a three-digit number such as 001 or 002)
EIN of the sponsor company—Borregaard usa, Inc.. employees’ 401(k) retirement savings plan and trust

The divorce judgment should include language that specifies how retirement benefits should be divided. Then, a formal QDRO must be drafted to match that division, submitted to the court for signature, and finally sent to the plan administrator for approval and implementation.

Avoiding Common Mistakes in 401(k) QDROs

Many people lose out on retirement benefits due to poorly drafted QDROs. At PeacockQDROs, we’ve seen hundreds of preventable errors. Learn about the top common QDRO mistakes here.

Not specifying dates for account division
Failing to address loans or tax treatments
Neglecting pre-approval with the plan
Using the wrong plan name or sponsor name

Each of these errors can delay processing—or worse, invalidate the QDRO entirely.

How PeacockQDROs Handles the Entire Process

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. We understand what corporate-sponsored plans like the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust require, and we tailor our approach accordingly.

Not sure how long it will take? That depends on a few things—most of which you can learn about in our guide to the 5 factors that determine QDRO timelines.

Final Tips for Dividing the Plan Successfully

Here are a few actionable tips if you’re dividing the Borregaard Usa, Inc.. Employees’ 401(k) Retirement Savings Plan and Trust:

Request a copy of the Summary Plan Description and current plan statement from the participant
Clarify whether the division is of total account balance, vested balance, or only certain contributions
Determine if the plan will accept pre-approval of the QDRO draft—it helps prevent rejection later
Make sure your QDRO separates out Roth and traditional 401(k) funds accurately

Don’t postpone the QDRO process—many people wait until years after divorce only to learn they’re missing essential information or have lost eligibility to claim their share.