QDRO

[afl]

If parties agree in separation agreement to divide Husband's 401(k), MUST there be a QDRO entered by the Judge or is it just an OPTION to have a QDRO? In other words, is there any way to avoid a QDRO when 401(k) is divided by agreement?

[Lee Borden]

There's no way to divide a 401(k) without a QDRO. If you're trying to avoid using a QDRO, here are your options as I understand them:

• agree on other property to exchange in lieu of the retirement plan (for example, cash, or the house, or payment over time)
• have the participant agree to make a direct distribution to the alternate payee at the time he or she begins receiving benefits from the plan, backed by life insurance in the event of the participant's death
• have the participant pay a portion of the alternate payee's debt (to be used only if the alternate payee has ABSOLUTE confidence that the participant will make the payments or if the agreement specifies some relatively harsh remedies in the event of default)