Introduction
Dividing retirement assets in divorce can be one of the most complicated – and contentious – parts of the process. This is especially true when one or both spouses have a 401(k). If you or your former spouse is a participant in the Verisign, Inc.. 401(k) Plan, you’ll need a Qualified Domestic Relations Order (QDRO) to legally split the account. This article will walk you through how a QDRO works specifically for the Verisign, Inc.. 401(k) Plan and what pitfalls to avoid when drafting and executing it.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a court order that gives a former spouse (or other alternate payee) the right to receive a portion of a participant’s retirement plan benefits. QDROs are required for dividing most employer-sponsored plans, including 401(k) and pension plans, under ERISA (Employee Retirement Income Security Act).
Without a QDRO, the plan administrator cannot legally divide the retirement account between the participant and their former spouse. More importantly, any distributions without a QDRO could result in tax penalties.
Plan-Specific Details for the Verisign, Inc.. 401(k) Plan
- Plan Name: Verisign, Inc.. 401(k) Plan
- Sponsor: Verisign, Inc.. 401(k) plan
- Address: 12061 BLUEMONT WAY
- Plan Dates: Active from 1995-10-01 through 2024-12-31
- Plan Type: 401(k) Plan
- Organization Type: Corporation
- Industry: General Business
- Status: Active
- EIN and Plan Number: Required for QDRO processing but currently listed as “Unknown.” These will need to be obtained from Verisign, Inc.. 401(k) plan or supporting plan documentation to complete the QDRO.
Dividing the Verisign, Inc.. 401(k) Plan Using a QDRO
Employee and Employer Contributions
Like most 401(k) plans, the Verisign, Inc.. 401(k) Plan likely includes both employee deferrals and employer-matching contributions. A QDRO can be used to divide both types of contributions, but care must be taken to understand what portion of the employer’s contributions are vested as of the date of divorce or valuation.
Only vested portions of employer contributions can be assigned to the alternate payee. If your QDRO attempts to divide unvested funds, it may be rejected by the plan administrator.
Vesting Schedules
Vesting refers to the portion of employer contributions that the employee has earned the right to keep, even if they leave the company. Many 401(k) plans use a graded vesting schedule (e.g., 20% vested after two years, 40% after three, etc.).
In the divorce process, you’ll need to work with a QDRO professional to determine exactly how much of the employer contributions are vested at the valuation date specified in the order. This protects both spouses by ensuring that only funds truly available are divided.
Loan Balances and Repayment
If the participant has taken a loan against their 401(k) balance, the outstanding loan amount will reduce the available balance for division. The QDRO should clearly state whether:
- The loan balance should be excluded before dividing the plan
- Loan repayment obligations will remain with the participant
- The alternate payee’s share will be calculated based on a net or gross balance
Failing to address loan balances in a QDRO leads to confusion and delays – sometimes even rejected orders. At PeacockQDROs, we make sure to gather this data during the prep phase to avoid stumbling blocks later.
Roth vs. Traditional Contributions
Another important factor in the Verisign, Inc.. 401(k) Plan is identifying Roth versus Traditional 401(k) contributions. Roth 401(k) funds grow tax-free but are funded with after-tax dollars. Traditional 401(k) contributions grow tax-deferred, and withdrawals are taxed as income.
Your QDRO should outline if the division is:
- Pro-rata across all account types (Roth and Traditional)
- Limited to one specific account type
- Based on traced contributions
Inaccurate descriptions of how funds should be divided between Roth and Traditional sub-accounts can lead to mistakes in the money ultimately transferred to the alternate payee.
Steps to Get a QDRO for the Verisign, Inc.. 401(k) Plan
1. Gather Plan Information
Contact the HR or benefits administrator at Verisign, Inc.. 401(k) plan for a copy of the plan’s QDRO procedures, current Summary Plan Description, and to obtain the required EIN and plan number. Without these, the QDRO cannot be processed.
2. Determine Division Terms
This includes the valuation date (date of divorce, date of filing, etc.), percentage or dollar amount to be awarded, how gains/losses are treated, and treatment of loans and vesting.
3. Draft the QDRO
At PeacockQDROs, we draft your QDRO in compliance with the plan’s unique rules and ERISA requirements. Our team ensures that the order includes language specific to the Verisign, Inc.. 401(k) Plan and avoids red flags that cause delays.
4. Submit for Pre-Approval (if available)
If Verisign, Inc.. 401(k) plan allows it, we’ll submit the draft for pre-approval. This review step saves everyone time and reduces the chance of the court-approved version being rejected later.
5. File with the Court
Once approved (if required), the QDRO must be signed by the judge in your divorce case. We handle this court filing as part of our full-service approach.
6. Submit to the Plan
After filing, we send the court-approved QDRO to Verisign, Inc.. 401(k) plan for processing. We also communicate directly with the administrator to track progress until the alternate payee’s funds are fully distributed.
Common QDRO Mistakes to Avoid
We see too many DIY or poorly prepared QDROs that fail due to:
- Incorrect plan name or missing EIN/plan number
- Unclear valuation dates and division terms
- No direction on how to divide Roth vs. Traditional accounts
- Ignoring loan balances
- Failing to address vesting status of employer contributions
Check our detailed guide on common QDRO mistakes to avoid costly delays and rejections.
Why Work with PeacockQDROs for This Plan?
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—with clear communication, plan-specific experience, and hands-on service every step of the way. Learn more about our full-service process at PeacockQDROs QDRO Center.
Also, read about the 5 factors that determine how long it takes to get a QDRO done—so you know what to expect.
Final Thoughts
Dividing the Verisign, Inc.. 401(k) Plan in a divorce requires careful attention to plan rules, vesting, and account types. A well-drafted QDRO not only ensures you receive the correct share but also protects you from future legal or tax issues. Whether you’re the participant or alternate payee, working with a QDRO professional is essential.
State-Specific Call to Action
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 Verisign, Inc.. 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.