Splitting up and splitting hairs over pensions

My divorce was finalized in 2016 after 20 years of marriage. However, my ex-wife and her attorneys refuse to agree to particular language outlined in our divorce decree regarding the QDROs (qualified domestic relation order). I have a defined benefit pension and a deferred compensation account. Specifically, our decree requires that I elect option C on the pension side, but it doesn’t say who pays for these costs AND it does not say that I have to name her as beneficiary — the retirement board attorneys advised me to name my current wife or children as beneficiary.

On the deferred comp side, the decree requires division “by 50% of the value at the time of divorce plus $6,400.” We had agreed to give her extra cash during mediation for use as a security deposit or down payment for housing (which she never used having moved with our daughters into her father’s basement). I am arguing that the $6,400 is in lieu of any interest earned because she continued to delay drafting of the QDROs. The firm selected to draft the QDROs refuses to finish them because of this dispute in language.

I am being told that the decree language is what it is and the QDROs should be drafted as such. What can I do if the firm won’t draft them, and I really don’t want to have to drag her back to court since child support and

all other terms are done? I am nearing retirement and need to have this cleared up.

This is a case of the devil being in the details. If the details are not there, it is not a clear and unequivocal order, which means she would have a difficult time convincing a judge that you are in contempt. That being said, it is certainly reasonable to infer that you are expected to elect Option C so that your ex had the survivor benefits after your death as opposed to a new spouse or your children. But, those are your dice to roll and it may be your ex dies first and never knows who you designated as Option C beneficiary. If you die first she would then have to fight it out with your designated beneficiary for the money.

As for the deferred comp QDRO, the drafting company is obligated to follow the court order and draft according to the order unless the two of you jointly instruct them otherwise. If the order says the $6,400 replaces the interest then it does. If it does not say that, you don’t get to assume that was the intention. If the order is silent on the issue of interest to the date of division, generally you do not read it in but this could work against you if the value of the deferred comp account has decreased since the divorce. Either way you don’t get out of the $6,400 because she didn’t use it in the manner it was planned.