Draft Qualified Domestic Relations Order

---
name: draft-qualified-domestic-relations-order
task_id: trusts-estates-private-client/draft-qualified-domestic-relations-order
description: Closes the gap where agents draft QDROs without resolving the separate-interest-vs.-shared-payment design choice, locking in the coverture fraction denominator, addressing survivor benefit requirements, and producing each plan's QDRO as a standalone document.
activates_for: [planner, solver, checker]
---

# Skill: Draft Qualified Domestic Relations Orders (QDROs)

## 1. Subject-matter triage
- Treat the settlement agreement, decree, plan procedures, statements, and correspondence as a multi-document input set that must be reconciled before drafting.
- Draft one order per qualified plan; do not force distinct plans into a single order.
- If the source set contains more than one plan, party, date, benefit form, or division formula, enumerate each in a working list before drafting so each is analyzed on its own terms.
- If a submission deadline or pre-approval step appears in plan correspondence or procedures, surface it immediately and treat it as action-driving.

## 2. Failure modes the skill is correcting
- Drafting one order intended to cover more than one qualified plan, instead of preparing a separate order for each plan and conforming to each plan’s procedures.
- Failing to resolve the separate-interest versus shared-payment design choice and explain the implications for benefit timing, mortality risk, and access.
- Using a prospective coverture fraction without fixing the denominator as of a date certain; a prospective denominator can reduce the alternate payee’s share as future service accrues.
- Omitting survivor-benefit treatment in defined benefit plan orders.
- Not addressing plan loans or pre-marital rollover amounts, which can affect the marital portion of an account.
- Treating the issues memo as a summary rather than an issue-by-issue decision aid tied to the operative draft language.
- Stating a legal conclusion without tying it to the controlling retirement-plan or domestic-relations authority.

## 3. Legal frameworks / domain conventions that apply
- A QDRO must identify the plan, participant, and alternate payee; specify the amount or formula for the alternate payee’s benefit; and not require benefits not otherwise available under the plan or increased benefits under the plan.
- Each plan must have its own order that complies with that plan’s QDRO procedures and any pre-approval process.
- Separate-interest order: the alternate payee’s benefit is segregated and grows independently; the alternate payee may choose a distribution date without waiting for the participant’s retirement; mortality risk is allocated separately based on the alternate payee’s life expectancy.
- Shared-payment order: the alternate payee receives a share of each payment when the participant begins receiving benefits; if the participant dies before benefits commence, the alternate payee may receive nothing absent survivor-benefit treatment; the alternate payee cannot begin receiving payments before the participant reaches the plan’s earliest retirement age.
- Coverture fraction: identify the marital-service numerator and fix the denominator as of a date certain rather than calculating it prospectively at retirement.
- Survivor-benefit treatment: in defined benefit plans, consider whether the order should preserve or redirect pre-retirement and/or post-retirement survivor rights to match the intended division of benefits.
- Earliest retirement age: for shared-payment defined benefit orders, the alternate payee generally cannot receive payments until the participant has reached the plan’s earliest retirement age; consider whether separate-interest language or early-commencement language is needed to address that timing gap.
- Tax treatment and rollover rights: the order should address that distributions to an alternate payee are taxable to that alternate payee and should preserve any available direct-rollover treatment for eligible distributions.
- Plan loans: outstanding loans may reduce the account balance at distribution; the order should specify how any loan reduction is allocated between the participant’s share and the alternate payee’s share.
- Pre-marital rollover amounts: if an account includes amounts rolled in before the marital period, the order should expressly address whether those amounts and related earnings are included in or excluded from the marital share.
- Use controlling authorities when stating legal propositions, including ERISA § 206(d)(3) and IRC § 414(p) for QDRO requirements, plus any plan-specific procedures that govern form and submission.

## 4. Analytical scaffolds
1. Extract the agreed division terms from the marital settlement agreement and divorce decree for each plan separately.
2. Review each plan’s QDRO procedures document; note any plan-approved language requirements, submission deadlines, and any pre-approval process.
3. For each plan, select the appropriate design based on plan availability, participant age, and the client’s priorities for access timing and mortality-risk protection; state the trade-offs in the issues memo.
4. Fix the division date and the coverture-fraction denominator as of a date certain; if a calculation is needed for analysis, perform it only after identifying the governing date.
5. For the defined benefit plan order, address survivor-benefit treatment and the earliest-retirement-age timing issue.
6. For the defined contribution plan order, address loan-offset treatment, pre-marital rollover treatment, tax treatment of distribution, and any available rollover language.
7. Review statements and correspondence for balances, service dates, payment status, loan status, and any administrator comments that may affect drafting.
8. Note any plan administrator submission deadline from plan correspondence; flag it as a priority action item.
9. Address opposing counsel’s stated positions on contested QDRO issues in the issues memo.
10. Confirm the draft order language does not require a form of benefit or optional feature the plan does not offer, or a benefit increase prohibited by QDRO rules.

## 5. Vertical / structural / temporal relationships
- Distinguish between account-level division mechanics for the 401(k) plan and annuity-style benefit allocation for the defined benefit plan.
- Track the timing of benefit division across four distinct moments where applicable: valuation/division date, QDRO qualification, participant retirement or earliest retirement age, and alternate payee distribution.
- In the defined benefit context, separate pre-retirement survivor rights from post-retirement survivor rights and specify which interest each order preserves, diverts, or disclaims.
- In the defined contribution context, separate vested account balance, loan balance, rollover-derived amounts, earnings/losses, and post-division investment experience.
- Align the order’s temporal mechanics with the source documents rather than defaulting to a generic effective date.
- If the record is ambiguous on whether the award is fixed-dollar or percentage-based, resolve the ambiguity by reading the settlement, decree, and plan procedures together before drafting.

## 6. Output structure conventions
- Produce three deliverables: one QDRO for each plan and one issues memorandum.
- Draft the two QDROs as standalone operative documents, each with plan identification, participant and alternate payee identification, division formula, valuation or service-date mechanics, distribution mechanics, tax language, and execution/submission provisions.
- Put the primary QDRO files first and ensure they are complete before the memo is finalized.
- The defined benefit QDRO should expressly address survivor benefits and commencement timing.
- The defined contribution QDRO should expressly address account valuation, gains and losses, loan treatment, rollover treatment, and direct-rollover language where available.
- The issues memorandum should be issue-by-issue, not narrative-only, and should explain the chosen structure, the governing authority, the source-document cross-reference, and the practical consequence of each drafting choice.
- Use an ordinal severity label for each issue in the memo, applied consistently across the document, with a one-line rationale.
- End the memo with a Recommended Actions block that assigns each action to a role and ties it to any source-document deadline or, if none exists, to the next practical filing or approval milestone.
- Before finishing, confirm by name that each requested file is drafted, non-empty, and contains operative language rather than a description of the intended language.