Why Are Model QDROs Dangerous?
Now that QDROs have been around for awhile, many plan administrators have developed their own model QDROs for use by family law attorneys. Although such models may expedite the QDRO approval process, review the terms of the QDRO carefully to be sure that the intent of the parties is met. Many sample QDROs effectively mandate the terms of a property settlement by being very restrictive in their methodology. Do not let a plan administrator dictate the terms of your property settlement. For example, many model QDROs do not contain language regarding cost-of-living adjustments for the alternate payee. If you have negotiated pro rata COLA adjustments for your client, be sure to include them in the QDRO. Fortunately, many companies will let you know that their model is just that, a generic QDRO that addresses only the simplest of approaches. But by “simple,” they are really referring to its ease of administration. Do not take the easy road by simply filling in the blanks; be sure that your c
