How do I calculate the amount of money to pay under a QDRO order and modify alimony?

Full question:

I've been divorced since June 2,2006 and have a QUDRO. i have reached my retirement. the decree states my ex-spouse is entitled to 50% of my pension, however my pension is paid in two parts. The question I seek is if I receive $500.00 from the company I will also receive an amt. termed supplemental in the amt. of $2,500.00. Is my ex only entitled to 50% of the $500.00 or is she also entitled to any of the supplemental that I will receive? Also i,m ordered to pay $150.00 per week alimony for a period not to exceed 84 months, but is termed as modifiable as to the amt. but not to the term so my last question is can I revisit the court's on this issue and request a reduction on the alimony since my income upon retirement will be significantly reduced? I require a reply A.S.A.P. as today is my end of an addition incentive proposal to which my ex has no entitlement to any additional proceeds to this offer.

• Category: Divorce
• Subcategory: Modification
• Date: 04/07/2025
• State: Ohio

Answer:

QDROs apply to ERISA-qualified pension plans, including defined benefit and defined contribution plans, 401(k)s, thrift savings plans, some profit-sharing and money-purchase plans, Keoghs, tax sheltered plans, and ESOPs. IRAs, which are subject to distribution, must be divided without a QDRO. ERISA prevents owners from assigning pension benefits to another person, so QDROs eliminate any barrier to their distribution as part of divorce. This, however, requires a QDRO.

A QDRO is a way of dividing these benefits equitably. Here are a few points to remember:

Defined contribution plans have cash value today.
They can be divided by a QDRO.
A portion of the defined benefit plan can be transferred to the IRA for a former spouse without tax consequences.
In some cases, the plan can be divided so that the former spouse now has an account with the company.

A QDRO "creates or recognizes the existence of an alternate payee’s right ... to receive all or a portion of the benefits" that otherwise would have gone to the owner. A properly written QDRO describes not only how the assets of a pension plan are to be divided, but what happens when the parties die. That means that the QDRO defines the survivor’s benefits that are paid to nonemployee, which is usually the wife. This is of particular concern to a woman who may go into her retirement with a smaller retirement benefits of her own (or none at all) and live longer than her former spouse.

QDROs distribute pensions along the approaches known as 1) shared interest (the so-called "if, as and when received" routine), which means both the employee and nonemployee spouse begin to receive benefits at the same time; 2) separate interest, which means that the alternate payee may receive benefits when he or she chooses; and 3) qualified joint and survivor annuity, which provides for survivorship rights for the alternate payee. Each of these approaches have advantages and disadvantages.

Care must be taken in writing a QDRO. It must specify the name of each participant, his or her mailing address and that of the alternate payee, the percentage to be received by each payee (or the manner by which the percentage is calculated), the duration of the order (the number of payments) and the plan to which the order applies.

It would be recommended that you closely review the QDRO issued by the court. Sometimes, the company pension administrator will issue a letter of interpretation of the QDRO. If not, you may want to review the terms with your divorce attorney or another qualified attorney.

In Ohio, modification of alimony/spousal support requires a significant change in circumstances. If any factor used in determining spousal support changes, such as a change in income or remarriage, modification may be available.

The following is the relevant section of the Ohio statutes regarding spousal support and modification.

§ 3105.18. Award of spousal support; modification.

(A) As used in this section, "spousal support" means any payment or payments to be made to a spouse or former spouse, or to a third party for the benefit of a spouse or a former spouse, that is both for sustenance and for support of the spouse or former spouse. "Spousal support" does not include any payment made to a spouse or former spouse, or to a third party for the benefit of a spouse or former spouse, that is made as part of a division or distribution of property or a distributive award under section 3105.171 [3105.17.1] of the Revised Code.

(B) In divorce and legal separation proceedings, upon the request of either party and after the court determines the division or disbursement of property under section 3105.171 [3105.17.1] of the Revised Code, the court of common pleas may award reasonable spousal support to either party. During the pendency of any divorce, or legal separation proceeding, the court may award reasonable temporary spousal support to either party.

An award of spousal support may be allowed in real or personal property, or both, or by decreeing a sum of money, payable either in gross or by installments, from future income or otherwise, as the court considers equitable.

Any award of spousal support made under this section shall terminate upon the death of either party, unless the order containing the award expressly provides otherwise.

(C) (1) In determining whether spousal support is appropriate and reasonable, and in determining the nature, amount, and terms of payment, and duration of spousal support, which is payable either in gross or in installments, the court shall consider all of the following factors:

(a) The income of the parties, from all sources, including, but not limited to, income derived from property divided, disbursed, or distributed under section 3105.171 [3105.17.1] of the Revised Code;

(b) The relative earning abilities of the parties;

(c) The ages and the physical, mental, and emotional conditions of the parties;

(d) The retirement benefits of the parties;

(e) The duration of the marriage;

(f) The extent to which it would be inappropriate for a party, because that party will be custodian of a minor child of the marriage, to seek employment outside the home;

(g) The standard of living of the parties established during the marriage;

(h) The relative extent of education of the parties;

(i) The relative assets and liabilities of the parties, including but not limited to any court-ordered payments by the parties;

(j) The contribution of each party to the education, training, or earning ability of the other party, including, but not limited to, any party's contribution to the acquisition of a professional degree of the other party;

(k) The time and expense necessary for the spouse who is seeking spousal support to acquire education, training, or job experience so that the spouse will be qualified to obtain appropriate employment, provided the education, training, or job experience, and employment is, in fact, sought;

(l) The tax consequences, for each party, of an award of spousal support;

(m) The lost income production capacity of either party that resulted from that party's marital responsibilities;

(n) Any other factor that the court expressly finds to be relevant and equitable.

(2) In determining whether spousal support is reasonable and in determining the amount and terms of payment of spousal support, each party shall be considered to have contributed equally to the production of marital income.

(D) In an action brought solely for an order for legal separation under section 3105.17 of the Revised Code, any continuing order for periodic payments of money entered pursuant to this section is subject to further order of the court upon changed circumstances of either party.

(E) If a continuing order for periodic payments of money as alimony is entered in a divorce or dissolution of marriage action that is determined on or after May 2, 1986, and before January 1, 1991, or if a continuing order for periodic payments of money as spousal support is entered in a divorce or dissolution of marriage action that is determined on or after January 1, 1991, the court that enters the decree of divorce or dissolution of marriage does not have jurisdiction to modify the amount or terms of the alimony or spousal support unless the court determines that the circumstances of either party have changed and unless one of the following applies:

(1) In the case of a divorce, the decree or a separation agreement of the parties to the divorce that is incorporated into the decree contains a provision specifically authorizing the court to modify the amount or terms of alimony or spousal support.

(2) In the case of a dissolution of marriage, the separation agreement that is approved by the court and incorporated into the decree contains a provision specifically authorizing the court to modify the amount or terms of alimony or spousal support.

(F) For purposes of divisions (D) and (E) of this section, a change in the circumstances of a party includes, but is not limited to, any increase or involuntary decrease in the party's wages, salary, bonuses, living expenses, or medical expenses.

(G) If any person required to pay alimony under an order made or modified by a court on or after December 1, 1986, and before January 1, 1991, or any person required to pay spousal support under an order made or modified by a court on or after January 1, 1991, is found in contempt of court for failure to make alimony or spousal support payments under the order, the court that makes the finding, in addition to any other penalty or remedy imposed, shall assess all court costs arising out of the contempt proceeding against the person and shall require the person to pay any reasonable attorney's fees of any adverse party, as determined by the court, that arose in relation to the act of contempt.