When retirement accounts are an issue in a Texas divorce, the court will generally issue a Qualified Domestic Relations Order (“QDRO”). A QDRO is an order that creates, recognizes, or assigns rights of an alternate payee to receive benefits from another person’s retirement plan. Although a QDRO is often issued during the divorce, in some cases, a court may enter a post-judgment QDRO. A former wife recently challenged a post-judgment QDRO, arguing it was void.
The parties had been married around nine years when the wife petitioned for divorce. The trial court awarded the wife all sums, increases, proceeds, and other rights related to her employee retirement accounts, except $10,000 from her Teacher Retirement System (“TRS”) account went to the husband. The divorce decree was signed on March 27, 2019 and the divorce was effective October 31, 2018.
Husband Seeks QDRO
The husband filed a proposed order on June 3 in the divorce case seeking a QDRO but did not serve the wife. The court entered an order a few days later designating the husband alternate payee of the wife’s TRS plan and stating he was not to “receive more than a total of $10,000 plus interest. . ..”