Posted by Nydia Streets of Streets Law in Florida Divorce
What is a qualified domestic relations order (QDRO) in a Florida divorce? Separate from the final judgment, this is an order that is required by most retirement plans to distribute funds within the plan. So when a marital settlement agreement or final judgment entitles a spouse to some percentage or sum of a spouse’s retirement account, the QDRO is entered and sent to the plan administrator to effectuate a payout from the account to the non-owner spouse. In the case Johnson v. Johnson, 1D18-3966 (Fla. 1st DCA October 30, 2019), the former wife sought to obtain a QDRO 20 years after her final judgment was entered.
The parties’ 1997 final judgment of divorce awarded the former wife half of the former husband’s deferred compensation plans and specified the one-half value of each of the plans was $72,906.00. The former wife filed a motion for entry of a QDRO and clarification of the sums due to her under the final judgment. After a hearing, the court entered an order granting the former wife the $72,906 plus accrued earnings on the account since the entry of the final judgment. The former husband appealed.
As the appellate court held, “To determine whether a former spouse is entitled to gains or losses of a retirement plan, the court must decide who has the ownership interest in the asset. When a former spouse is designated an owner of an asset, they are entitled to any increases (or decreases) in the asset from the date of the final judgment.” (internal citations omitted). Holding that since the final judgment included a definite sum, the court determined former wife was not entitled to the accrued earnings on the account since the entry of the final judgment.
The court continued “In the present case, the final judgment clearly stated, ‘[a]t the Husband’s retirement, the Wife is entitled to receive one-half (1/2) of each plan’s value as of the date of filing the Petition for Dissolution of Marriage. One-half of the value of both plans is $72,906.00, approximately.’ The language of the final judgment references a specific sum certain payable to Appellee. This gives Appellee a monetary interest in the retirement plans, and not ownership of the plans. Thus, Appellee was not entitled to receive any appreciation in the value of the plans as awarded by the trial court. Additionally, there was no reservation of the issue in the final judgment.”
Division of retirement accounts requires careful consideration and review. Before you enter your marital settlement agreement, consult with a Miami divorce lawyer to ensure the appropriate and protective language is included in the agreement for you.