QDRO Calculator

A Qualified Domestic Relations Order (QDRO) is a court order required to divide qualified retirement plans - 401(k)s, 403(b)s, pensions, profit-sharing plans - between divorcing spouses without triggering early withdrawal penalties or taxes. IRAs do NOT need a QDRO; they transfer via "incident to divorce" language in the divorce decree. Without a QDRO, dividing a 401(k) triggers 10% penalty + ordinary income tax on the entire amount.

Coverture fraction method (most common): marital portion = current balance × (years married while contributing ÷ total years contributing). Example: $200K balance, married 10 of the 20 years contributing → marital portion = $200K × (10÷20) = $100K. Each spouse typically gets 50% of marital portion ($50K each in this example). Pension valuations use actuarial present value calculations and require a specialist.

QDRO preparation typically costs $500–$1,500 paid to a QDRO specialist or family law attorney. Pension QDROs (more complex) can cost $2,000–$5,000. Some plan administrators charge fees ($300–$1,000). Some attorneys include QDROs in divorce flat fees, others charge separately. DO NOT skip the QDRO - DIY language in divorce decrees is routinely rejected by plan administrators, leaving you without your share.

For 401(k) and most defined contribution plans: no impact - the QDRO transfers your share to a separate account. For pensions with survivor benefits: the original survivor election may need to be modified. For some plans, remarriage of the alternate payee (the recipient spouse) can affect benefit forms. Process the QDRO IMMEDIATELY after divorce - many plan administrators reject QDROs filed years later.