Retirement plan administrators must be aware of the implications a change in marital status can have on a participant’s benefits. Updates to beneficiary designations may alter who receives benefits upon the participant’s death, while domestic relations orders (DROs) can legally assign all or part of a participant’s accrued benefit to a child or former spouse. For defined benefit plans, changes in marital status and filing status can also increase tax withholding. Although federal anti-assignment rules under the Employee Retirement Income Security Act generally prohibit the transfer of benefits, an exception exists for qualified domestic relations orders (QDROs). In this article, originally published in the Q2 2025 issue of Benefits Quarterly, we explore:

• What constitutes a DRO
• How a DRO becomes a QDRO
• Responsibilities of the plan administrator
• Separate interest and shared interest QDROs
• Additional considerations for qualifying a DRO
• Plan termination and QDROs

Access the full Q2 2025 issue of Benefits Quarterly here.