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Divorce and Domestic Relations Order (DRO)

 

In many divorces, the court will order that retirement plan benefits be divided between the spouse who participates in the retirement system and the spouse who is not a participant.

  • The purpose of a domestic relations order (DRO) is to allow TRS to pay the spouse or former spouse directly as an alternate payee.
  • TRS cannot issue a payment directly to an alternate payee, even if the court awards an interest in the participant’s retirement plan benefits to the alternate payee, unless the court enters a DRO.
  • TRS must also determine the DRO to be a "qualified" domestic relations order (QDRO).
  • Approval (or qualification) of a DRO by TRS ensures that the alternate payee will receive the portion awarded by the court at the appropriate time (usually, after TRS begins distributions to the participant).
  • Although a judge signs a DRO, it is TRS that determines whether that order is qualified.

Frequently Asked Questions: