Pronunciation: [kjˈuːdɹˈə͡ʊ] (IPA) 
The term "QDRO" stands for "Qualified Domestic Relations Order." While the spelling of this word may seem confusing, it follows the standard American English pronunciation rules. Phonetic transcription of the word would be /kwɑːlfʌɪd dəˈmɛstɪk rɪˈleɪʃənz ɔːdər/. The "Q" in QDRO sounds like "kw," similar to the word "quick." The "D" and "R" sounds are pronounced as they are in English. The word "Order" is spelt phonetically as 'ɔːdər'.
A Qualified Domestic Relations Order (QDRO) is a legal order issued by a court that assigns and determines the division of certain retirement benefits in the event of a divorce or separation. A QDRO is typically used to address the division of pension plans, profit-sharing plans, 401(k) plans, or other qualified retirement accounts that are subject to the Employee Retirement Income Security Act (ERISA) regulations.
The primary purpose of a QDRO is to legally recognize the non-employee spouse's right to receive a portion of the retirement benefits earned during the couple's marriage. It enables the non-employee spouse to receive a direct payment or transfer of benefits from the retirement account, without incurring any tax penalties that would typically be associated with early withdrawal.
To be considered a QDRO, the court order must meet the specific requirements and standards laid out in ERISA and the Internal Revenue Code. These standards include details about who is entitled to receive the benefits, the timing and amount of the benefits, and the manner in which the benefits will be paid or transferred.
QDROs are important tools in ensuring fair and equitable division of retirement benefits in divorce or separation proceedings. They create a legally enforceable rights and obligations for both the employee and non-employee spouse, ensuring that the latter receives their rightful share of the accumulated retirement savings.
