A Colorado QDRO should be a final division – not a litigation tool

There has been a general trend by QDRO specialists to approach the QDRO process as an adversarial process, where the retirement asset is generally not fully divided and financial ties continue to bind both spouses.

For example, some QDRO specialists advise former spouses to structure a QDRO so that the retirement benefits which go to each former spouse depend on factors such as which former spouse dies first. And, sometimes it is suggested that the employee spouse who is the plan participant should give up the right to include a “new” spouse in a joint and survivor annuity option, so that the former spouse gets greater retirement plan benefits at the expense of a “new” spouse.

In other words, if improperly done, some former spouses can have continuing competing interests. And more conflict.

The eventual effect of a QDRO which continues to bind the former spouses together is litigation and financial hardship. With few exceptions, it makes no sense. Only the litigation attorneys and certain QDRO specialists benefit.

A QDRO should never be the cause of litigation.  It should never be used to provide a continuing shared interest approach which binds former spouses together (with few exceptions.)

Instead, a QDRO should be used to fully divide marital property with a separate interest QDRO, similar to the division of the equity in a home.