A Qualified Domestic Relations Order (QDRO) is a court order in a divorce proceeding that divides retirement plans transferring a portion from the spouse who owns the plan (plan participant) to the spouse that does not own the plan (alternate payee).

A QDRO can also be used to collect child support and maintenance payments that are in arrears.

A QDRO is the only way that a retirement plan (other than an IRA) can be split between the plan participant and an alternate payee without any adverse income tax consequences. An alternate payee can be a spouse, former spouse, child, or other dependent of the plan participant. This split of retirement assets is accomplished tax-free.

State government and similar public retirement plans are divided with a similar type of court order, called a DRO. For example, in Colorado, many state employees are covered by a PERA plan. A DRO is used to divide a Colorado state PERA plan. However, the DRO must be completed within 90 days after permanent orders are entered, or PERA will not accept it. Retirement plans which can be divided include ERISA Plans, State and other Government Plans, Civil Service Pensions, and Military Plans. Usually, IRAs can be divided without the use of a QDRO or DRO.