It is vitally important to hire an expert to review a QDRO (or EDRO) prepared by the other side (or even one prepared by a jointly-retained QDRO preparer). Virtually all QDROs we have reviewed prepared by other QDRO experts or divorce attorneys contain at least one significant error. When I say a “significant error,” I don’t mean a simple misspelling or typo; I mean something that would result in someone not receiving his or her entire award. Sometimes its an overlooked COLA, the destruction of a potential reversion, a misstatement of the coverture language, denying an alternate payee the right to draw early or a more nuanced bias that favors one party over another. In many cases, these errors cannot be corrected later if the QDRO is signed by you or your client and entered with the court. In the cases where corrections can be made by amendment, it is significantly more expensive to do so than entering an error-free QDRO the first time. Family law attorneys should note that having a QDRO attorney conduct a review may discourage malpractice actions or shift liability away from themselves.
Some people think a plan’s pre-approval of a QDRO affords them some comfort. A plan’s pre-approval of a QDRO simply means that the plan believes the QDRO complies with the law (ERISA and the IRC) and the plan’s QDRO policies. It does not mean the QDRO is compliant with the judgement, the QDRO is appropriate under the circumstances, the QDRO is fair or anything else. In some cases, plans will even approve QDROs that do not comply with plan rules and essentially deny both parties higher monthly payments.
I believe our QDRO review service is the most underutilized service we offer. We typically receive glowing praise from our clients when we are hired to review a QDRO that someone else drafted. In some cases, it means dollars back in a client’s pocket. In most reviews, we are hired to examine the QDRO from one party’s perspective, although we could be jointly retained to perform a review. We charge $200 to review a QDRO and our turn around is usually within a week. If you have a court schedule that necessitates a quicker turnaround, just let us know. To perform a review, we need a copy of your divorce judgment and a copy of the QDRO or other division order. The fee can be securely paid by credit card online at http://qdroprofs.com/forms.asp or by check. When we conduct a review, we usually report the results orally and flag all significant issues in the QDRO. If written explanations are requested and/or appropriate, we will report the results of our review in writing.
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