What happens when QDRO fees are not paid.

It is a frequent problem when completing a divorce case, that where there are retirement benefits to divide, one of the parties fails to pay their portion of the drafting fees, and the QDROs do not get completed. Completing the QDROs (qualified domestic relations orders) is essential for the protection of the non-employee spouse, to make sure that they receive their 50% share of those benefits. It is also important to have the QDRO’s drafted quickly, complete, approved by the court and filed with the plan administrator. So, what can you do when your former spouse, refuses to pay for the cost of drafting the QDRO?

1. The obvious answer is to file a contempt motion with the court. However, it may not be the quickest solution to the problem. Certainly, filing a contempt motion and asking for costs and fees is the proper initial procedure where the other party has been court ordered to pay some or all of the preparation fees, and fails to cooperate with the process.
2.  Another possibility is to simply pay the processing fees yourself and then go after your ex-spouse   later with a contempt motion. If the processing fee, by example is $600 and you have paid your $300, paying the other half, will secure that the QDROs get timely processed. You can always file a contempt motion down the road and seek reimbursement of your $300 that you paid to have the QDROs completed, but this insures that the documents will be drafted timely.

Neither remedy is fair in the scheme of things. It is wrong that the other party fails to do what they are supposed to do, but where you are the non-employee spouse and you want to insure that the QDROs get properly drafted to secure your 50% interest in the plans, you are forced to do one of these two procedures to make sure the documents are completed.

For more information about this article, contact Karp & Iancu, S.C.