Introduction
Dividing retirement assets is one of the most complicated aspects of a divorce—especially when an Employee Stock Ownership Plan (ESOP) like the American Structural Concrete Employee Stock Ownership Plan is involved. Unlike traditional 401(k)s or pensions, ESOPs hold company stock, which makes the distribution process more complicated. Knowing how and when you can divide the plan, the rules you must follow, and the specific ESOP provisions is key to ensuring you get what you’re entitled to.
At PeacockQDROs, we’ve handled thousands of QDROs (Qualified Domestic Relations Orders) from start to finish—including QDROs involving complex ESOPs like this one. We’ll guide you through the unique aspects of the American Structural Concrete Employee Stock Ownership Plan and what divorcing spouses need to know.
Plan-Specific Details for the American Structural Concrete Employee Stock Ownership Plan
- Plan Name: American Structural Concrete Employee Stock Ownership Plan
- Sponsor: Unknown sponsor
- Address: 2385 Lithonia Industrial Blvd, Plan Code: 2P2I3I
- Plan Number: Unknown
- EIN: Unknown
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
This active ESOP plan is maintained by a business entity operating in the General Business sector. Because the EIN and Plan Number are currently unknown, it’s especially important to gather detailed plan documents when starting the QDRO process.
What Is a QDRO and Why It’s Necessary
A Qualified Domestic Relations Order (QDRO) is a legal order that divides retirement benefits between divorcing spouses. For the American Structural Concrete Employee Stock Ownership Plan, a QDRO is required to legally split the account and let the plan administrator distribute benefits to the alternate payee (the non-employee spouse).
Without a valid QDRO, the plan cannot issue payments to anyone other than the plan participant. That means even if a divorce decree awards part of the ESOP to the spouse, the plan won’t pay it out until a QDRO is on file and approved.
Special Rules for Dividing an ESOP in Divorce
ESOPs come with unique complications that differ from 401(k) or pension plans. Here’s what you need to be careful with when dividing an ESOP like the American Structural Concrete Employee Stock Ownership Plan:
Stock Valuation Timing
ESOP accounts are not funded with cash; they are funded with shares of company stock. These shares are not typically traded on the public market. That means:
- Valuation is usually done annually by an independent appraiser.
- The value assigned can fluctuate significantly year to year.
- QDROs should specify a clear valuation date (e.g., as of the date of divorce).
Because the stock value changes, choosing the right valuation date is critical for fairness. At PeacockQDROs, we make sure this is clearly laid out in the order so there are no surprises down the road.
Distribution Election Timing
Unlike cash-based retirement plans, ESOPs have strict rules about when distributions can be made. Distribution typically occurs:
- Only after the participant reaches normal retirement age or terminates employment
- And often only once per year due to administrative rules related to stock appraisals
This means that even with a QDRO in place, the alternate payee might have to wait to receive their payment. If the participant is still working, there may be a delay in when benefits are paid out.
Diversification Rights
ESOPs are required to give participants approaching retirement the right to diversify their accounts. However, these rights generally apply only to the employee—not the former spouse receiving ESOP shares through a QDRO.
That means the alternate payee may be limited in how they can move ESOP stock into other investment types unless the stock is sold or cashed out by the company. The QDRO needs to identify how diversification options apply—if at all—to the alternate payee.
Put Option Provisions
Since ESOP company stock is rarely publicly traded, participants and alternate payees often have the right to sell back shares to the employer through a “put option.” This allows the alternate payee to liquidate shares once eligible, typically after a distribution event.
The QDRO should state whether the alternate payee can exercise these rights independently and how the put option process works under the terms of the American Structural Concrete Employee Stock Ownership Plan.
Common Mistakes to Avoid with ESOP QDROs
If you’re dividing the American Structural Concrete Employee Stock Ownership Plan in a divorce, steer clear of these common errors:
- Failing to name a valuation date for the stock
- Assuming immediate payment will be available—it often won’t be
- Ignoring put option terms, leaving the alternate payee stuck with illiquid stock
- Not specifying tax responsibility in a non-cash distribution
You can avoid these mistakes by working with experienced QDRO professionals like us.
Documentation You’ll Need to Draft a Proper QDRO
To create a valid QDRO for the American Structural Concrete Employee Stock Ownership Plan, you or your attorney will need to collect the following:
- A copy of the divorce decree or marital settlement agreement
- The formal plan name: American Structural Concrete Employee Stock Ownership Plan
- Sponsor name: Unknown sponsor
- Plan Number and EIN—these must be obtained or confirmed in the plan’s Summary Plan Description (SPD)
Because this plan’s sponsor, EIN, and plan number are unknown from public records, it’s especially important to request those details directly from the plan administrator or participant.
How PeacockQDROs Can Help
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 dealing with a public retirement plan or a complex ESOP like this one, we know the pitfalls—and how to avoid them.
If you’re wondering how long the process takes, read about the 5 key factors that affect QDRO timelines. We also offer a range of QDRO services that are tailored to your type of retirement account.
Final Thoughts
Dividing the American Structural Concrete Employee Stock Ownership Plan in a divorce isn’t a straightforward process. Between stock valuation, limited liquidity, and timing restrictions, there’s a lot that can go wrong without a meticulously prepared QDRO.
Whether you’re the participant or the alternate payee, having the right language in the order—and a strategy for how and when to distribute—is vital. Don’t leave it to chance. Make sure you’re working with professionals who understand ESOPs inside and out.
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 American Structural Concrete Employee Stock Ownership 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.