Failure to pay court-ordered support happens quite regularly. Few people — including most divorce lawyers — realize that retirement plans can be used to pay child support and alimony.

Divorce lawyers, generally familiar with the need for a QDRO to divide retirement plans, However, most are misinformed and fail to realize that QDROs may be used to provide child support (or spousal support), particularly when it is past due. The truth is that QDROs are available for child and spousal support payments.

When finalizing divorce documents, lawyers must be certain that every source of funds has been included. This also means including QDRO’s. Even if the obligor parent has lost his or her job, retirement funds may be used to make support payments. This is true for both 401(k) plans and traditional pension plans — even if the employee is too young to be eligible to receive payments.

Most child enforcement agencies are in the dark about this mechanism for obtaining support payments. QDROs can be a powerful tool for prying support payments out of a hostile, non-compliant Deadbeat Donald, or Desiree. Upon entry of a properly formatted QDRO subsequently submitted to the employer (or former employer), there is nothing that Deadbeat Donald or Desiree can do to stop the support payments from coming out of their retirement plan. Quitting a job, moving out of state, declaring bankruptcy — none of these will defeat the QDRO.

Coincidentally, QDROs come in handy for someone who does not intend to avoid paying support, but life and its circumstances have created hard times leaving the obligor parent unable to make support payments. Former spouses who want to pay what is owed may gratefully consent to a QDRO for past-due alimony or child support, since funds to pay their support are otherwise unavailable. Entering a child support QDRO for the arrearage may eliminate court proceedings, stop the late payment penalties from multiplying, and allow the obligor to remain free from incarceration. And, of course, it provides their children with the support awarded for their care.

QDROs can even be used in some circumstances for support payments even before there is an arrearage — they can be set up as the mechanism by which support will be paid going forward.



This potential source of funds becomes an important consideration. Contact Bowe & Associates, PLLC to address using QDRO’s to help secure support or arrears payments.