Failure to Comply with a Qualified Domestic Relations Order (QDRO) When Getting a Divorce

Navigating the complexities of Qualified Domestic Relations Orders (QDROs) can be challenging, especially when an ex-spouse fails to comply with the terms of the order.

In Arizona, QDROs divide certain types of retirement plans during a divorce. 

Compliance with these orders is crucial for ensuring that each party receives the assets to which they are entitled through the property division process.

If your ex-spouse is not adhering to the terms of a QDRO, there are legal avenues you can pursue to enforce the order and protect your rights.

Did you know that over 30% of QDRO disputes involve delays or refusals to comply with the order?

Protect your financial future by enforcing your QDRO with the help of De Novo Law.

Table of Contents

• What is a QDRO?
• Common Issues with QDRO Compliance
• How QDROs Interact with Pensions
• Legal Steps to Enforce a QDRO in Arizona
• Potential Remedies and Court Action

What is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a legal order that recognizes the right of a spouse, former spouse, child, or other dependent to receive a portion of an individual’s retirement plan benefits.

In Arizona, QDROs are typically used during divorce proceedings to ensure an equitable division of retirement assets.

To be effective, the retirement plan administrator must approve the QDRO and comply with federal and state laws.

Common Issues with QDRO Compliance

Several issues can arise when an ex fails to comply with a QDRO.

These issues may include:

• Delay in Submission: Your ex may delay submitting the QDRO to the plan administrator, which can postpone your receipt of the benefits.
• Refusal to Sign: An ex-spouse may refuse to sign the QDRO, obstructing its implementation.
• Improper Calculation of Benefits: Incorrect calculation or distribution of retirement benefits can occur, resulting in an unfair allocation of assets.

These issues can significantly impact your financial security and may require legal intervention.

How QDROs Interact with Pensions

Pensions are one of the most common types of retirement assets divided by a QDRO.

In Arizona, many public employees, including teachers, police officers, and firefighters, have pensions that can be subject to division in a divorce.

When a QDRO is applied to a pension, it specifies how the pension benefits will be divided between the former spouses.

The division can be structured in several ways, depending on the terms of the QDRO and the specific pension plan rules.

For example, the QDRO may allow the non-employee spouse to receive their share of the pension as soon as the employee spouse is eligible to retire, even if the spouse chooses not to retire. Alternatively, the QDRO might stipulate that the non-employee spouse will only receive benefits when the employee spouse retires.

Understanding the specific rules of the pension plan involved is essential, as these rules will govern how the QDRO is implemented.

Some pensions, particularly those of federal or military employees, have unique requirements for QDROs, and failure to adhere to these requirements can delay or complicate the division of assets.

Legal Steps to Enforce a QDRO in Arizona

Arizona law provides several remedies if your ex fails to comply with a QDRO.

You can file a motion with the court to enforce the QDRO.

Under ARS § 25-318, the court has the authority to ensure that the division of property, including retirement assets, is enforced according to the divorce decree.

If your ex-spouse is willfully disobeying the court’s order, they may be held in contempt of court, which can result in fines or even jail time.

Additionally, the court may require your ex-spouse to pay for any financial losses you incurred due to their non-compliance.

This could include covering the legal fees you have accrued while trying to enforce the QDRO.

Potential Remedies and Court Actions

The court can take several actions to remedy the situation if your ex fails to comply with a QDRO:

• Contempt of Court: As mentioned, the court may hold your ex-spouse in contempt, which can lead to sanctions, including fines or imprisonment.
• Writ of Execution: The court can issue a writ of execution, allowing you to collect the owed amount directly from your ex-spouse’s assets.
• Garnishment of Wages or Assets: The court may order the garnishment of your ex-spouse’s wages or other assets to satisfy the QDRO.

These legal remedies ensure that your rights are protected and that the terms of the QDRO are upheld.