Have Pension or 401(k), But No Lawyer? Better Understand What a QDRO Is

Many folks get divorced without legal representation, for a variety of reasons.  I have seen stipulated divorce decrees that state, "She gets 1/2 of my pension."  This can be catastrophic without a Qualified Domestic Relations Order.  Here is a link to a good article about QDRO's:

http://www.marketwatch.com/story/divorce-retirement-accounts-take-tax-hit-2013-01-09

Do you need a lawyer to draft a proper QDRO?  Ask your self if you can try to fix the fuel injector in your car or give yourself a haircut.  Certainly you can, but what are the consequences.  Without a properly-drafted QDRO (approved by the Plan Administrator before the judge signs it)  it could be thousands of dollars in taxes you owe, not just a bad haircut or a car that won't start.

Back in the 1980's and 1990's I had many clients, usually female, who insisted that they wanted the house in the divorce settlement (mostly for emotional reasons, ie. "I raised my kids there!") and that the husband could keep his pension.  They assumed the house would continue to appreciate as an asset and would be available for retirement.  Many went ahead and settled in this fashion contrary to my advice.  I always wonder how they have fared financially now that it is 20-30 years later and they are at or approaching retirement, having retained a depreciating asset that needed lots of upkeep, while ex-hubby continued to grow his retirement plan, perhaps to the benefit of a new spouse.  Hopefully their house is not "under water" relative to the mortgage or was not foreclosed in the past few years.  Live and learn, I guess.

UPDATE:  Just read an article that in MN it is unethical for a lawyer to send a proposed QDRO to the judge for signature without notice to or input from opposing counsel.  I occasionally get such QDRO's and routinely advise the submitting lawyer that I will not sign it unless the opposing lawyer approve the form of the order.