When one gets married, they typically don’t expect their marriage to end in divorce. However, with 50% of marriages ending in divorce, it is beneficial to consider the possibility and one’s financial situation if it occurred. One of the biggest assets of a couple is their retirement account. In order to protect one spouse in the event of a divorce, a Qualified Domestic Relations Order, QDRO, should be considered. A QDRO enables a spouse to receive a portion of the other spouse’s retirement account. The QDRO can be used for child support, alimony, or marital property rights. When a QDRO is issued, the document must state how the assets in the qualified plan will be divided. There are two methods used when dividing the assets: the shared payments approach and the separate interest. The shared payment approach entitles one spouse to receive a particular percentage of the monthly benefit once they retire. With the special interest approach, the nonparticipant spouse would receive a percentage of the account balance as a lump sum distribution. Once assets are distributed, the assets will be taxed as ordinary income. However, if they are deposited into an IRA or another qualified plan, they will not be taxed. Each qualified plan has a particular method when dealing with QDROs; the plan administrator can be contacted to inform participants about the QDRO rules.