What are the tax consequences of having a QDRO?
There could be very significant tax consequences if a QDRO is adopted. As such, a tax attorney, actuary or financial planner should be consulted. Generally speaking, if the court orders the employee to pay retirement benefits to the former spouse when received, the employee bears the income tax burden. On the other hand, if a QDRO has been adopted, then the alternate payee (non-employee, former spouse) is taxed on the benefits received by the alternate payee (non-employee, former spouse).
