Qualified Domestic Relations Order
Generally, a party in a divorce case is entitled to 1/2 of the accrued value of his or her spouse’s retirement account during the course of the marriage. When the spouse’s share is transferred by way of a Qualified Domestic Relations Order, i.e., a QDRO, the money transfers to the other spouse’s retirement account, and is a non-taxable event.
Pensions are one kind of retirement benefit. It is important to consider obtaining a death benefit in the divorce division, so that if the pensioner dies before the receiving spouse does, the latter can continue to receive benefits for his or her life rather than termination of the benefit upon the death of the pensioner.