When it comes to dividing retirement assets during a divorce, the Qualified Domestic Relations Order (QDRO) process can be both intricate and time-consuming. From the moment a potential client expresses interest to the final approval of the QDRO by the court, a series of stages must be meticulously followed to ensure a seamless and successful outcome. In this comprehensive guide, we’ll take you through each stage of the QDRO process, shedding light on the key steps and considerations along the way.
1. Initial Contact: Laying the Foundation
The journey commences with the initial contact between the client and the legal team. This could happen through various channels, such as web intake forms or scheduled consultations. The goal here is to gather basic information about the case and determine whether it’s a suitable fit for proceeding with a QDRO. Once qualified, the potential client’s case moves forward.
2. Scheduled Consultation: Assessing the Case
Following the initial contact, a consultation is scheduled to delve deeper into the details of the case. During this stage, the attorney evaluates the viability of pursuing a QDRO and outlines the potential steps involved. If both parties agree to proceed, the fee agreement is introduced for the client’s review.
3. Consultation Complete: Laying Out the Roadmap
With the consultation completed and the client’s green light to proceed, the fee agreement is shared. The client’s readiness to move forward is pivotal at this juncture, as the process involves a series of steps that require cooperation and participation.
Dear Client,
Thank you for meeting with us at PeacockQDROs for a consultation. We hope you found the session informative and helpful.
As a reminder, you are not represented by our firm unless you sign a retainer agreement and pay your invoice. For cases that we feel like are a good fit, we will send the initial paperwork requests to you now. Please return these documents as soon as possible, so we can start working on your QDRO.
If you are interested in proceeding with our firm, also note that we cannot proceed with your case until we receive our intake form and your divorce documents, plus retirement statements, if available. If you have any questions or concerns, please do not hesitate to contact us.
We look forward to hearing from you soon and thank you again for the opportunity to help you with your legal needs.
Sincerely,
PeacockQDROs Team
4. Fee Agreement: Solidifying the Commitment
Once the client gives the green signal by signing the fee agreement, the stage is set for the QDRO journey. This agreement outlines the financial aspects of the process, including the flat fee structure and expectations regarding payments
5. Paperwork Sent: Getting the Ball Rolling
At this stage, paperwork is dispatched to initiate the process formally. It’s crucial to ensure that all required documents are correctly filled out and submitted. Any missing information can potentially delay the process, making thoroughness paramount.
Dear Client,
Greetings from PeacockQDROs Law Firm. We appreciate your trust in our services and we are committed to delivering high-quality results for your QDRO needs. The most efficient way to communicate with us is through text messages at 562-774-1529. You can also leave voicemails and we will try to return your calls within two business days if possible. Alternatively, you can send us an email and we will respond within 48 hours.
The standard procedure for QDROs is as follows: You, the client, need to complete the intake form and sign the retainer agreement, pay your invoice, and provide us with your divorce documents (a copy of your judgment and settlement agreement that specifies the rights and division details of the retirement plans). If you jointly retained with your ex-spouse, either one of you can fill the intake form out and submit the paperwork. After that, we go to work drafting your QDRO and submitting it to the plan. Typically, nothing more is needed from you until we get ready to sign and file the QDROs, though we may reach out for more information and updates if we hit any roadblocks.
We charge our fees in advance to reduce the need for support staff and administrative time. In exceptional cases, we may consider a payment plan. We strongly prefer cash, check, or Zelle ([email protected]), but you can also pay your electronic invoice with your checking account or credit card.
Please feel free to contact us if you have any questions. Text messages are the fastest way to reach us, but email and voicemail are also acceptable.
Sincerely,
PeacockQDROs Team
6. Gathering Documentation: Assembling the Puzzle
With paperwork in hand, the next step involves collecting the necessary documentation from various sources, such as retirement account statements and relevant financial records. These documents lay the foundation for the subsequent stages of the QDRO process.
Dear Client,
Thank you again for choosing PeacockQDROs to assist you with your QDRO process. We are currently working on gathering the necessary information and conducting the research to prepare your QDRO documents.To expedite this process, we kindly request that you submit your intake form, judgment, and settlement agreement as soon as possible, if you have not done so already. Additionally, if you have any statements from the retirement plan that is being divided, please send them to us as they can be very useful.
Furthermore, if you are the plan participant, we suggest that you contact your plan administrator and authorize them to share information with your attorney, William Peacock. This will allow us to communicate with them more effectively and resolve any potential issues that may arise during the QDRO process. If you are the alternate payee and your former spouse is cooperative, you may ask them to do the same for their plan. Please note that this is an optional step and not a requirement for completing your QDRO.
We appreciate your cooperation and prompt response. If you have any questions or concerns, please do not hesitate to contact us.
Please be assured that we respect your privacy and confidentiality and will not disclose any of your personal or financial information without your consent.
Sincerely,
PeacockQDROs Team
7. Working on Initial Draft: Crafting the Blueprint
Once the documentation is in place, the attorney works on creating the initial draft of the QDRO. This involves translating complex legal and financial information into a clear and concise document that adheres to the guidelines provided by the retirement plan.
Dear Client,
Thank you for choosing PeacockQDROs to prepare your Qualified Domestic Relations Orders (QDROs). We have received your intake documents and are working on drafting your QDROs. This process usually takes one or two business days, unless your retirement plan has special requirements or complications. We will contact you if we encounter any issues or need additional information from you. We will also notify you when we have sent the draft QDRO to the plan administrator for preapproval.
Sincerely,
PeacockQDROs Team
8. Sent for Preapproval: Seeking Plan Consent
The preliminary draft is sent to the retirement plan administrator for preapproval. This step ensures that the draft meets the plan’s specific requirements and aligns with the client’s intentions. If the plan raises any concerns, necessary edits are made.
We have submitted your QDRO(s) to the retirement plan administrator for pre-approval. This is the stage where they check the language and inform us if any changes are required for them to accept the order once it is signed by the court. At this point, if the plan participant has not retired, they will usually freeze the account until the QDRO is resolved with a final order, or for 18 months, whichever comes first.
9. Plan Rejected Preapproval, Can’t Calculate: Navigating Setbacks
In the event that the plan administrator rejects the preliminary draft during the preapproval process, it could be due to missing or inaccurate information. This setback requires revisiting the draft and addressing the plan’s concerns before proceeding.
Dear Client,
We regret to inform you that the retirement plan administrator was unable to calculate your retirement plan award. This may happen for different reasons, but most commonly it is because their records do not go back far enough to determine the marital and non-marital portions of your retirement plan account balance. In some rare cases, the plan may simply refuse to do any calculations at all.
We understand that this is a frustrating situation, and we want to help you find a solution. You have some options to consider, depending on your circumstances and preferences.
One option is to negotiate with your ex-spouse over an estimated dollar amount. This may be a reasonable choice for lower-value accounts. A possible way to estimate a fair share of the account is to use a time-based division, similar to what we do for pension accounts. With this method, you divide the number of months you were married while contributing to the retirement plan by the number of months that contributions were made to the plan throughout the career, as of today’s date. Then you divide that by two, multiply by 100, and you get an approximate percentage of the plan that belongs to each party.
Another option is to hire an accountant or a valuation firm to perform an asset tracing. This requires as much back statements as you can provide, plus estimates from the valuation expert. This can cost anywhere from a few hundred dollars to a few thousand dollars, depending on the complexity, so many people opt not to pursue a formal valuation, but it can be helpful for high-value accounts or high-conflict divorces.
We are here to assist you in discussing your options, though we do not offer formal valuations. Once you have agreed on a dollar amount or a percentage of the account as of a recent date, we can draft an order and resubmit it for pre-approval to the plan administrator.
Sincerely,
PeacockQDROs
10. Plan-Required Edits in Progress: Refining the Draft
Should the plan request edits, the attorney revises the draft to align with the plan’s requirements. This iterative process aims to bridge any gaps and ensure the draft’s compliance.
Dear Client,
We are writing to inform you that the retirement plan administrator has requested some edits to the rough draft QDRO language that we prepared for you. This is a normal part of the process and nothing to worry about.
We will work on making the necessary adjustments to the draft and send it back to the retirement plan administrator as soon as possible. We will let you know when we receive the final pre-approval for your QDRO.
In most cases, we do not need anything from you at this stage, but if we do, we will reach out to you promptly. We appreciate your patience and cooperation as we finalize your QDRO.
Thank you for choosing PeacockQDROs for your QDRO needs. If you have any questions or concerns, please do not hesitate to contact us.
Sincerely,
PeacockQDROs Team
11. Ready for Signatures (Pre-Approved): Client Review
Once the plan preapproves the draft, it’s sent back to the client for review. This is a crucial step as it ensures that the client is satisfied with the terms outlined in the QDRO before proceeding to the next stages.
Dear Client,
We are pleased to inform you that your QDRO has been pre-approved by the retirement plan administrator and is ready for signatures. This is an important step in finalizing your divorce settlement and securing your retirement benefits.
Depending on your state, you may or may not be required to sign the QDRO, but we strongly recommend that you do so. Signing the QDRO indicates your consent to the terms of the order and facilitates its approval by the court. Please check your email for the e-signature request and follow the instructions carefully.
If you are in New Jersey, please note that your court requires notarized signatures. We will email you the documents and you will need to visit a notary public for your ink signature. You can either scan and email us the notarized signature page or mail it to us at 245 Tom Swamp Rd, Hamden, CT 06518.
If you have any questions or concerns about your draft order, especially regarding the language or the division of the retirement assets, please do not hesitate to schedule a 15-minute meeting with us at https://www.peacockesq.com. We are here to assist you and ensure that your QDRO is accurate and fair.
Thank you for choosing us as your QDRO provider. We appreciate your trust and cooperation.
Sincerely,
The PeacockQDROs Team
12. Ready for Signatures (No Pre-Approval): Client Agreement
If the plan preapproval is not required or not obtained, the draft is sent to the client for review and approval. This step signifies the client’s agreement with the terms and conditions laid out in the QDRO.
Dear Client,
We are pleased to inform you that your QDRO is ready for signatures. No pre-approval by the retirement plan administrator was available for your plan, either because we used the plan’s required forms or because they do not offer pre-approvals. Signatures are an important step in finalizing your divorce settlement and securing your retirement benefits.
Depending on your state, you may or may not be required to sign the QDRO, but we strongly recommend that you do so. Signing the QDRO indicates your consent to the terms of the order and facilitates its approval by the court. Please check your email for the e-signature request and follow the instructions carefully.
If you are in New Jersey, please note that your court requires notarized signatures. We will email you the documents and you will need to visit a notary public for your ink signature. You can either scan and email us the notarized signature page or mail it to us at 245 Tom Swamp Rd, Hamden, CT 06518.
If you have any questions or concerns about your draft order, especially regarding the language or the division of the retirement assets, please do not hesitate to schedule a 15-minute meeting with us at https://www.peacockesq.com. We are here to assist you and ensure that your QDRO is accurate and fair.
Thank you for choosing us as your QDRO provider. We appreciate your trust and cooperation.
Sincerely,
The PeacockQDROs Team
13. Party Won’t Sign: Navigating Disagreements
At times, one of the parties may refuse to sign the QDRO. This could result from disagreements or misunderstandings about the terms. In such cases, additional negotiation and communication are necessary to move forward.
Dear Client,
We regret to inform you that your QDRO is still on hold because one or both parties will not sign. We have tried our best to facilitate signatures and answer any questions from both parties, as long as we can provide informational answers without violating any legal or ethical rules. However, it seems that we are not making any progress.
Your options to proceed are as follows:
Contact the other party that is not signing, either directly or through someone you both know. If you cannot reach them, or if you think that this will not help them sign, then you should contact a divorce lawyer in your area.
Consider asking your divorce lawyer to file a motion with the court to get the order entered without the other party’s signature. Depending on your local laws and the court’s discretion, you may be able to get some compensation for your legal fees if the other party is refusing to sign without a good reason. The decision of what legal strategy to use and whether to seek compensation will be up to your divorce lawyer and the court.
We will keep your file on hold with us and let us know if you have any questions, need any changes to your draft, or need any support for your efforts to finalize this. We do not charge for most minor changes or communications from this point on, but if we have to get involved in the court process or prepare any documents, statements, or affidavits that require our expertise, we charge $350 per hour.
We hope that you can resolve this issue soon and get your QDRO finalized. Thank you for choosing PeacockQDROs.
Sincerely,
The PeacockQDROs Team
14. Ready for Filing: Preparing for Submission
Once both parties have signed off on the QDRO, it’s ready for filing with the court. This step marks the transition from the drafting phase to the court submission phase.
We have completed the preparation of your QDRO and obtained the necessary signatures from all parties. We are now ready to file it with the court using the most efficient method available, either electronically or by tracked Priority Mail.
Please note that the court processing times may vary depending on the location and the judge assigned to your case. Some QDROs are approved within hours, while others may take months. We will keep you informed of any updates as soon as we receive the court’s signature on your QDRO.
15. Ordering Certified Copies: Ensuring Authenticity
In preparation for court submission, certified copies of the QDRO are ordered to validate the document’s authenticity and ensure its legal standing in the proceedings.
Dear Client,
We are pleased to inform you that your QDRO has been successfully processed by the court and is now finalized. The next step is to obtain a certified copy of the order from the court clerk and submit it to the retirement plan administrator. This takes an average of two weeks, depending on the availability of the court staff and the postal service. We will keep you updated on the status of your QDRO and notify you when we mail the final copies to the plan.
Thank you for choosing PeacockQDROs for your QDRO needs. We appreciate your trust and cooperation in this matter.
Sincerely,
PeacockQDROs Team
16. Rejected by Court: Navigating Judicial Challenges
There’s a possibility that the court might reject the QDRO due to procedural errors or discrepancies. In such cases, the attorney addresses the court’s concerns and revises the document accordingly.
Dear Client,
We regret to inform you that your QDRO has been rejected by the court. This is a common occurrence that usually does not require any action from you. It is often caused by a minor clerical error that we can easily correct and resubmit. We are working diligently to resolve this issue as soon as possible.
Please rest assured that, in nearly all cases, this is simply a procedural matter that we will handle on your behalf. If we need any additional information or documents from you, we will contact you directly and guide you through the process. Otherwise, you can expect to receive a confirmation message from us within the next few days, indicating that we have successfully refiled your QDRO with the court.
We apologize for any inconvenience or confusion this may have caused you. We appreciate your patience and cooperation in this matter. If you have any questions or concerns, please do not hesitate to contact us at any time.
Sincerely,
PeacockQDROs
17. Ready for Plan Division: Executing the QDRO
Once court approval is secured, the QDRO is ready for execution. The retirement plan administrator divides the assets as outlined in the QDRO, ensuring a fair and equitable distribution between the parties.
Dear Client,
We are pleased to inform you that your final certified QDROs have been sent to the retirement plan. This is usually the final step for our office and most plans will contact you and your former spouse directly from now on. However, if you have any questions or concerns, or if you do not receive any confirmation from the plan, please let us know and we will follow up with the plan to expedite the process. Please note that most plans will stop discussing matters with us at this point, so it is your responsibility to reach out to the plan and to us if you do not hear anything further regarding your QDRO and asset division.
This stage involves the division of assets. Most plans will complete this within one or two months. They will perform calculations and create new accounts.
For deferred compensation plans (such as a 401(k), 403(b), or 457 plan), this means that the cash award will be transferred to a new account in the same plan, to the alternate payee by check, or to the new plan by rollover, though not all options are available on all plans. Most plans will provide the distribution options to the alternate payee directly, so please watch your mail.
For pension plans, if the employee is retired, the alternate payee should expect to receive payments in the next few months. If the plan has been withholding the alternate payee’s share of the funds, they will often issue a “back check” for the accumulated funds, plus start monthly payments. If the employee is not retired, the alternate payee may have to wait until the employee retires or is eligible to retire to receive pension payments, but check with the plan for their specific rules.
Thank you for choosing PeacockQDROs for your QDRO needs. We appreciate your business and wish you all the best.
Sincerely,
PeacockQDROs
In conclusion, the journey through the stages of a QDRO is complex and requires careful attention to detail at each step. From the initial consultation to the final approval, legal expertise and meticulous documentation are essential to ensure a successful outcome. By navigating these stages with diligence and precision, individuals can navigate the challenging process of dividing retirement assets during a divorce and emerge with a fair and equitable resolution.