Introduction
When a marriage ends, dividing retirement assets can be one of the most challenging parts of a divorce settlement. If one of the spouses has a retirement account through the Wellspring 401(k) Plan, an accurate and enforceable Qualified Domestic Relations Order (QDRO) is essential. Getting it right means protecting both parties’ interests and avoiding expensive mistakes down the road.
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the document and walk away—we handle every step, including preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only draft the order and leave you to figure out the rest.
What Is a QDRO and Why Do You Need One for the Wellspring 401(k) Plan?
A Qualified Domestic Relations Order (QDRO) is a court-approved order that allows a retirement plan to legally divide benefits between spouses after divorce. Without a QDRO, the plan administrator of the Wellspring 401(k) Plan cannot make payments to the non-employee spouse—even if the divorce judgment says they’re entitled to a portion.
The Wellspring 401(k) Plan, like most 401(k) plans, is governed by ERISA and has its own internal rules for accepting and processing QDROs. Those rules must be carefully followed to ensure your order is accepted and enforced.
Plan-Specific Details for the Wellspring 401(k) Plan
Below are the known details for this specific retirement plan:
- Plan Name: Wellspring 401(k) Plan
- Sponsor: Wellspring care Inc.
- Address: 20250718155036NAL0002955488001, as of 2024-01-01
- Employer Identification Number (EIN): Unknown (must be obtained for QDRO submission)
- Plan Number: Unknown (must be determined before drafting)
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
This plan is active and likely includes both traditional pre-tax contributions and optional Roth 401(k) contributions. Because it’s a general business plan in a corporate setting, it likely contains features such as employer matching, vesting schedules, and possibly outstanding loan balances.
Key Considerations When Dividing the Wellspring 401(k) Plan
Employee and Employer Contributions
Most QDROs for 401(k) plans divide both employee and vested employer contributions. However, employee contributions are always considered fully owned, while employer contributions may not yet be vested.
It’s very important to specify in your QDRO whether the division includes just the vested account balance or anticipates future vesting. Many divorcing spouses assume they’re entitled to 50%, when in reality only a portion is subject to division under existing vesting rules.
Vesting Schedules and Forfeitures
Corporations like Wellspring care Inc. usually impose vesting schedules for employer contributions. If the employee spouse has worked there for a short time, the non-employee spouse could walk away with only a fraction of the employer matches—or none at all.
A well-drafted QDRO must make clear whether the alternate payee’s share includes only vested amounts as of the date of divorce or also includes amounts that may vest later. Not addressing this could result in delays or disputes when the order is implemented.
Loan Balances and Offsets
401(k) loans are another issue. If the employee spouse took a loan from their Wellspring 401(k) Plan account, it can reduce the account balance available for division. The QDRO must address how these loans are handled.
There are generally two approaches:
- Subtract the loan balance from the account and divide the net amount
- Ignore the loan and divide the gross balance, assigning full repayment responsibility to the employee spouse
The right approach depends on your divorce case and what the parties negotiated. A generic QDRO template won’t catch this—professional guidance is essential.
Roth vs. Traditional Contributions
The Wellspring 401(k) Plan may include both traditional (pre-tax) and Roth (post-tax) accounts. Roth contributions are taxed differently than traditional ones, and your QDRO must specify how to divide each type.
Failing to separately identify Roth and traditional assets can create tax liabilities down the road. If the alternate payee receives part of a Roth account but rolls it into a traditional IRA mistakenly, that could result in unnecessary taxes or penalties.
Required Information for Drafting Your QDRO
Even though some critical information—like the plan number and EIN—is not currently publicly available, these are required for submitting a QDRO for the Wellspring 401(k) Plan. Your attorney or QDRO specialist should contact Wellspring care Inc. or the plan administrator to obtain this data.
Other must-haves include:
- Names and addresses of both spouses
- Social Security numbers (submitted securely, never in court filings)
- Date of marriage and date of separation or divorce
- Exact percentage or dollar amount to be assigned
- Instructions for gains and losses
How Long Does It Take?
One of the most common questions we get is, “How long will my QDRO take?” Timing depends on several factors, which we cover in detail here: QDRO Timing Factors.
Generally, you can expect the process to take a few months, depending on the cooperation of the parties, the court, and the plan administrator. At PeacockQDROs, we help move things along by completing every step for you—from drafting to final execution.
Common Mistakes to Avoid
Many divorcing couples or even family law attorneys make preventable errors when it comes to QDROs. Some of the most frequent mistakes include:
- Failing to specify a clear division date
- Forgetting to account for loans
- Not distinguishing between Roth and traditional 401(k) accounts
- Omitting instructions on gains or losses
- Using a boilerplate QDRO that doesn’t match the plan’s rules
We discuss more of these in detail at Common QDRO Mistakes.
Why Choose PeacockQDROs?
You deserve peace of mind during your divorce. At PeacockQDROs, we maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
When you choose us, you’re not just getting a document. You’re getting a complete service that includes:
- Custom QDRO drafting for the Wellspring 401(k) Plan
- Communication with the plan administrator
- Court filing and prompt follow-up
- Final acceptance by the retirement plan
Learn more about our full-service approach at PeacockQDROs QDRO Services.
Final Thoughts
Dividing the Wellspring 401(k) Plan in divorce isn’t as simple as splitting a bank account. It requires a successful QDRO tailored to the plan’s rules and the parties’ circumstances. Considering factors like vesting, loan balances, and Roth contributions can make or break the financial outcome for both sides.
Don’t leave your future to chance—get expert help to ensure your QDRO is accurate and enforceable.
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 Wellspring 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.