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A QDRO is short for \u201cQualified Domestic Relations Order\u201d and a DRO is short for \u201cDomestic Relations Order\u201d. A QDRO and DRO are basically the same thing, the only difference is that a QDRO will be 'qualified' by the administrator of the retirement plan.
A domestic relations order can be a QDRO only if it creates or recognizes the existence of an alternate payee's right to receive, or assigns to an alternate payee the right to receive, all or a part of a participant's benefits.
Benefits of a QDRO The beneficiary receiving the funds is not taxed either, as long as the funds are put into another retirement account. If the funds are distributed, income taxes will be levied, and if the person is under the age of 59½, there'll be an additional 10% tax on the distribution amount.