Question :
I have recently divorced. How will amounts awarded to my former spouse be taxed?

Answer :
A Qualified Domestic Relations Order (QDRO) is a court order used to divide specific types of retirement plans. A QDRO grants the "alternate payee," your former spouse, the right to a part of the retirement benefits you earned through an employer-sponsored retirement plan. Amounts awarded and paid to a former spouse as a result of a divorce will be taxable to the former spouse.