A Qualified Domestic Relations Order (QDRO) is a court-approved document that allows retirement assets to be legally divided between spouses without triggering early withdrawal penalties or tax consequences.

Why do I need a QDRO?

A QDRO ensures that the receiving spouse gets their agreed-upon share of the retirement account. Without a QDRO, the plan administrator cannot legally process the division.

How does the QDRO process work after mediation?

After mediation, a QDRO is drafted, sent to the plan administrator for pre-approval, filed with the court for a judge’s signature, and then submitted to the plan administrator for processing. The receiving spouse then gets their share of the retirement funds.

A QDRO is typically drafted by a QDRO specialist or an attorney who ensures the document complies with both the court’s requirements and the specific retirement plan’s rules.

Do both spouses need to sign the QDRO?

Typically, both spouses must sign the QDRO before it is submitted to the court for approval.

Can mediation help with the QDRO process?

Yes. Mediation allows couples to reach a fair and customized agreement about retirement asset division. Once an agreement is made, the QDRO process is simply a legal step to formalize the decision.

Will I have to pay taxes on the funds I receive from a QDRO?

If the funds are rolled into an IRA or another retirement account, taxes are deferred. However, if the recipient takes a direct withdrawal, taxes may apply, and an early withdrawal penalty may be imposed if they are under 59½ years old.

What if one spouse wants to keep their entire retirement account?

Through mediation, spouses can negotiate an offset agreement where one keeps the retirement account while the other receives equivalent assets, such as cash or real estate.

How the QDRO Process Works After Mediation | Haas Mediation - Haas Mediation & Training | NY-based Mediation services specializing in divorce, family & support, corporate and religious faith mediation

QDROs & Mediation: What Happens Next?

You’ve reached an agreement in mediation. You’ve tackled the hard conversations, figured out a plan that makes sense for both of you, and decided how to divide your retirement accounts. Now what?

The next step is to make sure those decisions are properly executed—which is where a Qualified Domestic Relations Order (QDRO) comes in.

Many couples assume that dividing a 401(k), pension, or other retirement savings is as simple as splitting the balance in half. Unfortunately, it’s not quite that straightforward. Retirement plans have strict rules, and without the right legal document, your agreement can’t be processed.

That’s why understanding the QDRO process is so important. The good news? If you’ve gone through mediation, you’re already ahead of the game. You and your spouse have already figured out the big picture. Now it’s just a matter of making sure everything gets implemented smoothly and efficiently.

At Haas Mediation, we help couples navigate this step with clarity and confidence. If you’re wondering what comes next, schedule a complimentary call with us to talk through your questions.

What Exactly Is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a court-approved document that instructs a retirement plan administrator on how to distribute retirement assets after a divorce.

Without a QDRO, the retirement plan will not divide the funds, even if you and your spouse agreed to split them.

What Types of Retirement Accounts Require a QDRO?

401(k)s & 403(b)s (Employer-sponsored retirement plans)
Pension plans
Profit-sharing plans

IRAs and Roth IRAs do not require a QDRO. These accounts can be divided through a direct transfer agreement instead.

Why Mediation Makes the QDRO Process Easier

One of the biggest advantages of mediation is that you and your spouse stay in control of the decisions.

You decide what’s fair—instead of a judge imposing a division.
You can create a customized agreement that fits your financial future.
You avoid long, drawn-out court battles over retirement assets.

At Haas Mediation, we guide you through these discussions, making sure that your retirement division is fair, practical, and aligned with your long-term goals.

Step-by-Step: How the QDRO Process Works After Mediation

Once you’ve made your decisions in mediation, here’s what happens next:

Step 1: Drafting the QDRO

A QDRO specialist, paralegal, or attorney drafts the document (we have selective recommendations for each), making sure it includes:

The percentage or dollar amount each spouse will receive.
Plan-specific language (since every retirement plan has unique rules).

Step 2: Sending the Draft to the Plan Administrator

Before the QDRO gets submitted to the court, it must be reviewed by the retirement plan administrator to make sure:

The document meets the plan’s requirements.
There are no errors that could cause delays.

Step 3: Filing the QDRO with the Court

Once the plan administrator gives the green light:

The QDRO is submitted to the court.
A judge reviews and signs it, making it legally binding.

Step 4: Sending the Court-Approved QDRO to the Plan Administrator

Once the judge signs off, the finalized QDRO is sent back to the plan administrator.

Step 5: Distribution of Funds

The receiving spouse gets their share of the retirement funds.
Options typically include rolling the funds into an IRA or taking a direct payout (with potential tax consequences).

Why Choose Haas Mediation?

At Haas Mediation, we believe that divorce doesn’t have to be a battle—and that includes handling QDROs and retirement division.

Less Stress, More Control – You decide how to split retirement assets, not a judge.
Cost-Effective – Mediation saves thousands compared to a litigated divorce.
Guidance Every Step of the Way – We ensure that your QDRO is handled correctly so there are no surprises down the line.

If you’re ready to take the next step, schedule a complimentary call today.