Introduction
Dividing retirement assets during divorce can be emotional—and complicated. If your former spouse has a 401(k) through their employer, the process usually requires a Qualified Domestic Relations Order, or QDRO. For those dealing with the Clearcompany 401(k) Plan, understanding the rules specific to this retirement plan is essential to protect your share. At PeacockQDROs, we’ve handled thousands of QDROs and know how to get it done right—start to finish.
What Is a QDRO and Why You Need One
A QDRO is a court order that allows a retirement plan—like the Clearcompany 401(k) Plan—to pay benefits directly to an ex-spouse (called the “alternate payee”) following divorce. Without a QDRO, the plan cannot legally divide the account or issue any funds to a non-employee spouse. The QDRO must meet IRS and ERISA guidelines and satisfy the specific rules of the plan administrator.
Plan-Specific Details for the Clearcompany 401(k) Plan
Before submitting a QDRO, it’s important to gather key information about the plan involved. Here are the plan-specific details we know for the Clearcompany 401(k) Plan:
- Plan Name: Clearcompany 401(k) Plan
- Sponsor: Clearcompany 401(k) plan
- Address: 20250725052433NAL0002958275001, 2024-01-01, 2024-12-31, 2015-01-01
- Industry: General Business
- Organization Type: Business Entity
- Plan Number: Unknown (required for QDRO—must be requested from plan or employer)
- EIN (Employer Identification Number): Unknown (also required—can be obtained through employer or previous tax returns)
- Status: Active
- Participants: Unknown
- Assets: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
The Nature of 401(k) Plans in Divorce
The Clearcompany 401(k) Plan is a defined contribution plan—meaning the value depends on how much has been contributed and how the investments have performed. In divorce, each dollar matters, but it’s not just about dividing the account in half. Special features of the plan—like vesting, loans, and Roth contributions—must be addressed in the QDRO.
Dividing Employee and Employer Contributions
In most cases, the QDRO divides the marital portion of the account—usually the balance from the marriage date to the separation or divorce date. The employee’s salary deferrals are always 100% vested, but employer contributions may come with a vesting schedule. If employer contributions haven’t fully vested at the time of division, only the vested portion can be awarded in the QDRO.
You’ll need to determine:
- Which employer contributions are vested
- Whether to divide using a flat dollar amount or a percentage
- How to handle post-divorce earnings or losses
Understanding Vesting Schedules
Employer contributions often vest over a period of time. If your spouse leaves their job before full vesting, the unvested portion may be forfeited. Make sure your QDRO includes language clarifying that only vested amounts are divided, unless the plan explicitly allows for distribution of unvested balances if they vest in the future.
Ask the plan administrator (Clearcompany 401(k) plan) for a vesting schedule and a breakdown of how much is currently vested. This will give you clarity as you move forward.
Handling Outstanding Loans
If the participant took out a loan from the Clearcompany 401(k) Plan, it reduces the account balance available for division. The loan stays with the participant; the alternate payee typically isn’t responsible for repayment. However, the QDRO should address whether the division is calculated before or after subtracting the loan value.
Options include:
- Dividing the net account (after loan balance is subtracted)
- Dividing the gross account and excluding the loan from the alternate payee’s portion
Roth vs. Traditional 401(k) Balances
Many 401(k) plans—including potentially the Clearcompany 401(k) Plan—offer both pre-tax (traditional) and post-tax (Roth) contribution accounts. A proper QDRO will separate Roth and traditional balances and divide each accordingly. This is essential, as Roth funds may carry different tax treatment and distribution rules.
We recommend wording the QDRO to identify and divide each account type specifically, so there’s no confusion during distribution. Failing to do so may delay processing—one of the top issues in poorly drafted QDROs.
Submitting a QDRO for the Clearcompany 401(k) Plan
To get your QDRO implemented, here are the typical steps:
- Gather plan details, including vesting and balances (request from Clearcompany 401(k) plan)
- Draft the QDRO compliant with plan rules and federal guidelines
- Send the draft to the plan administrator for preapproval, if the plan allows it
- Submit the QDRO to the court for signature
- Send the signed order to the plan administrator for final review and processing
Keep in mind: many delays happen because required information is missing—or the QDRO doesn’t follow the plan’s specific rules. That’s where working with experts like us at PeacockQDROs makes a difference.
Why Work with PeacockQDROs?
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. If you’re dividing a complex retirement account like the Clearcompany 401(k) Plan, don’t risk costly mistakes or unnecessary delays. Let us guide you through the process the right way the first time.
Check out our resources for more helpful guidance:
Final Tips for Getting It Right
- Request updated account statements before drafting your QDRO
- Include clear language about whether gains or losses apply after the division date
- Confirm whether Roth and traditional 401(k) funds exist—and divide accordingly
- Address outstanding loans in the order
- Make sure the plan number and EIN are included in the final order
Each of these elements can affect timing, taxation, and fairness—particularly in a 401(k) like the Clearcompany 401(k) Plan that may include different contribution types and vesting rules.
Need Help Dividing the Clearcompany 401(k) Plan?
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 Clearcompany 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.