When high net worth couples divorce, one of the most complex aspects of property division is determining how to fairly and legally divide retirement accounts. These accounts often represent a substantial portion of the marital estate and must be handled with care to avoid unnecessary taxes, penalties, or delays. In Wisconsin, one of the key tools used to divide certain retirement assets is a Qualified Domestic Relations Order, or QDRO.

Our Wisconsin divorce attorneys for high net worth divorces will walk you through the essentials of QDROs in Wisconsin divorce cases: what they are, how they work, and the critical role they play in securing a fair distribution of retirement benefits.

What Is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a court order that allows a retirement plan to pay a portion of one spouse’s retirement benefits directly to the other spouse following a divorce. These orders are governed by federal law under the Employee Retirement Income Security Act of 1974 (ERISA), and they apply to most employer-sponsored retirement plans. Common examples include 401(k)s, 403(b)s, pensions, and profit-sharing plans. IRAs, on the other hand, do not require a QDRO and are instead divided using a different process under the Internal Revenue Code.