ARE THERE ANY ALTERNATIVES TO USING A QDRO TO DIVIDE PROPERTY INTERESTS?
Answer – YES. A QDRO accomplishes an “in kind” division of the deferred compensation account. This type of property division is accomplished whereby the court defines a formula for the future apportionment of the retirement benefits, as and when received. The parties may, however, choose to divide the account without a QDRO through a “cash out” approach. Under the “cash out” approach, the court assigns the entire pension to the employed spouse and awards other community assets equal in value to the community interest in the retirement benefits to the nonparticipant spouse (using actuarial present value). This approach finds approval in the case of In re Marriage of Bergman (1985) 168 Cal.App3d 742.
