QDROs for Child Support in San Antonio: Unlocking Retirement Assets to Satisfy Support Obligations

The Overlooked Enforcement Tool That Texas Law Now Places in Your Hands

When a parent falls behind on court-ordered child support, the custodial parent faces a frustrating reality: the obligor may have significant assets but insufficient liquid cash flow. Wage withholding is effective—but only while the obligor remains employed. License suspension pressures compliance—but does not generate immediate payment. Contempt proceedings threaten incarceration—but many parents rationally fear that jailing the obligor eliminates any chance of future payment.

What if the obligor sits on a substantial retirement account—401(k), pension, Thrift Savings Plan, or military retirement—while child support arrears accumulate unpaid?

Until recently, Texas custodial parents had no direct means to access those retirement assets. That changed decisively on September 1, 2021.

House Bill 867, enacted by the 87th Texas Legislature, added Subchapter J to Chapter 157 of the Texas Family Code, granting Texas courts explicit, continuing jurisdiction to render Qualified Domestic Relations Orders (QDROs) for child support enforcement. This landmark legislation aligns Texas law with federal ERISA provisions and fundamentally expands the enforcement arsenal available to San Antonio families.

At Barton & Associates, we pioneered the use of child support QDROs in Bexar County. Our attorneys combine deep family law experience with specialized knowledge of pension, retirement, and employee benefit plans—private, state, and federal. Whether you are a custodial parent seeking to collect years of unpaid support or an obligor facing a QDRO enforcement action, we provide the technical expertise and strategic advocacy this complex intersection of family law and employee benefits law demands.

What Is a Child Support QDRO? Understanding the 2021 Texas Revolution

The Traditional Limitation

Historically, Texas courts used QDROs exclusively for one purpose: division of retirement benefits as marital property in divorce. A QDRO is a domestic relations order that creates or recognizes the existence of an “alternate payee’s” right to receive all or a portion of a participant’s benefits under a retirement plan, without triggering adverse tax consequences or the 10% early withdrawal penalty.

Critically, property division QDROs are final divisions of community property. They transfer ownership of a portion of the retirement asset. Once transferred, those funds belong irrevocably to the alternate payee former spouse.

Child support QDROs operate differently. They are enforcement mechanisms, not property divisions. They do not permanently alienate retirement assets. Instead, they authorize direct payment from the retirement plan to satisfy a liquidated debt—past-due child support, including arrears, interest, medical support, and dental support.

The Statutory Foundation: Texas Family Code Subchapter J

Under Texas Family Code § 157.501, the court that rendered the child support order—or any court with jurisdiction to enforce it—possesses continuing jurisdiction to render enforceable QDROs permitting payment of:

• Pension benefits
• Retirement plan benefits
• Other employee benefits

… to an alternate payee or other lawful payee to satisfy support amounts due under the child support order.

This jurisdiction extends until all support due, including arrears and interest, has been paid in full.

Which Retirement Plans Are Subject to Child Support QDROs?

Subchapter J applies broadly to virtually every category of retirement benefit, unless prohibited by federal law:

Private Sector Plans: 401(k) plans, 403(b) plans, profit-sharing plans, defined benefit pension plans, employee stock ownership plans (ESOPs.)

Federal Plans: Thrift Savings Plan (TSP), Civil Service Retirement System (CSRS), Federal Employees Retirement System (FERS.)

Military Retirement: Non-disposable military retired pay (subject to 10 U.S.C. § 1408 and the Uniformed Services Former Spouses’ Protection Act.)

State and Municipal Plans: Texas Municipal Retirement System (TMRS), Teacher Retirement System of Texas (TRS), Employee Retirement System of Texas (ERS), and local police and firefighter pension funds.

IRAs: While traditional and Roth IRAs are not ERISA-qualified plans requiring QDROs, they remain accessible through child support enforcement proceedings under separate Family Code provisions.

Critically, the court’s jurisdiction applies regardless of whether:

• The retirement plan is already subject to another QDRO (including a prior property division QDRO from divorce)
• The retirement asset was divided or disposed of in a previous divorce decree
• The retirement plan is the subject of a pending divorce proceeding
• The parties executed a marital property agreement addressing the retirement asset

A prior divorce QDRO dividing the retirement account does NOT immunize that account from a subsequent child support enforcement QDRO. This is a critical distinction many obligors—and some family lawyers—fail to appreciate.

Child Support QDROs vs. Property Division QDROs: Critical Distinctions

Property Division QDRO (Divorce)

• Purpose: Divide community property interest in retirement
• Legal Authority: Texas Family Code § 9.101 et seq.
• Character: Transfer of ownership
• Tax Treatment: Tax-deferred; alternate payee pays ordinary income upon distribution
• Early Withdrawal Penalty: Penalty Not applicable (QDRO exception to 10% penalty)
• Jurisdictional Duration: Final division; jurisdiction typically ends upon approval
• Effect on Participant: Permanent reduction of retirement asset
• Plan Administrator Review: Required for qualification

Child Support Enforcement QDRO

• Purpose: Satisfy past-due child support debt
• Legal Authority: Texas Family Code § 157.501 et seq.
• Character: Involuntary liquidation of asset to pay judgment
• Tax Treatment: Tax-deferred; alternate payee pays ordinary income upon distribution
• Early Withdrawal Penalty: Not applicable (QDRO exception to 10% penalty)
• Jurisdictional Duration: Continues until arrears paid in full
• Effect on Participant: Immediate reduction of retirement asset; no permanent transfer of ownership interest
• Plan Administrator Review: Required for qualification

*The Dallas Court of Appeals squarely addressed child support QDROs in In re M.S. & M.D.S. *, affirming the trial court’s issuance of a QDRO withdrawing $5,500 from the father’s PepsiCo Savings Plan to satisfy child support arrears. The father’s due process, enforcement, and collateral estoppel challenges were uniformly rejected.

Strategic Applications: When to Use a Child Support QDRO

For Custodial Parents: Collection Strategy

The Chronic Underpayer: Wage withholding captures only 20-50% of net resources. Self-employed obligors may structure compensation to minimize wage withholding exposure. Retirement assets, however, are visible, quantifiable, and accessible.

The Looming Retirement: The obligor approaching retirement age may soon liquidate or commence drawing retirement benefits. If substantial arrears exist, the child support QDRO must be in place before funds are distributed or rolled over.

The High-Balance, Low-Cash-Flow Obligor: Some obligors maintain substantial retirement account balances while claiming inability to pay current support or arrears. The QDRO forces the obligor to choose: satisfy the child support debt, or accept immediate, involuntary withdrawal from the retirement plan.

Post-Majority Arrearage Collection: Child support arrears survive the child’s emancipation. The obligor who evaded enforcement while the child was minor often believes aging out extinguishes the debt. It does not. The QDRO remains available to collect post-majority arrears from retirement assets.

Medical and Dental Support Arrearages: Subchapter J expressly authorizes QDRO enforcement of past-due medical support and dental support, not merely periodic child support.

For Obligors: Defense and Resolution

Lump-Sum Arrears Resolution: Obligors facing mounting interest, license suspension, and contempt exposure may prefer a one-time retirement plan withdrawal to clear the arrears ledger and restore compliance. A child support QDRO, initiated by the obligor with custodial parent consent, can achieve this resolution without immediate out-of-pocket cash payment.

QDRO Modification and Termination: Courts retain continuing jurisdiction to amend QDROs to correct errors, clarify terms, add collection provisions, convert payment formulas to comply with plan terms, or vacate and terminate the order. Obligors who have cured arrears are entitled to QDRO termination.

Protection Against Overreach: While courts may issue child support QDROs, they remain subject to constitutional due process requirements: notice and an opportunity to be heard. We defend obligors against QDRO motions seeking excessive withdrawals disproportionate to the arrears or seeking to invade retirement assets not subject to QDRO jurisdiction.

The Child Support QDRO Process: What San Antonio Parents Must Know

Step One: Establish the Arrearage Judgment

A child support QDRO cannot issue based on disputed, unconfirmed arrears. The custodial parent must first obtain a cumulative arrearage judgment or a court finding confirming the specific amount of past-due support owed .

This typically occurs through:

• An enforcement motion under Texas Family Code Chapter 157
• An agreed order confirming arrears
• A default judgment following proper service and non-appearance

The arrearage judgment must specify the principal amount and accrued interest. Interest accrues at 6% per annum on unpaid child support.

Step Two: File Motion for Qualified Domestic Relations Order

Under § 157.502, the custodial parent—or the Title IV-D agency (Texas Attorney General’s Office)—may petition the court for a child support QDRO. The motion must:

• Identify the specific retirement plan(s) subject to withdrawal
• State the amount sought (cannot exceed the total confirmed arrearage plus authorized fees)
• Identify the alternate payee (custodial parent or other lawful payee)
• Comply with applicable notice requirements

Each party whose rights may be affected is entitled to notice.

Step Three: Temporary Orders Preserving Assets

While the QDRO motion is pending—or during an appeal of an enforcement order—the court may render temporary orders including temporary restraining orders and temporary injunctions to preserve the pension, retirement plan, or other employee benefits.

These orders prevent the obligor from liquidating, rolling over, transferring, or borrowing against the retirement asset pending the QDRO hearing.

Temporary orders under § 157.503 are not subject to interlocutory appeal.

Step Four: Drafting the QDRO

QDRO drafting is not form work. Each retirement plan has unique qualification requirements, distribution procedures, and administrative protocols. A QDRO rejected by the plan administrator is ineffective.

Our firm’s QDRO practice encompasses:

Plan-Specific Drafting: We obtain the current plan document, summary plan description, and model QDRO provisions. We ensure the order contains all information required by the specific plan administrator.

Tax Qualification: We structure withdrawals to comply with IRC § 414(p) and preserve the QDRO exception to the 10% early withdrawal penalty.

Federal Plan Compliance: Military retired pay, Thrift Savings Plan, CSRS, FERS, and other federal benefits are governed by distinct statutory schemes. Our attorneys are fluent in the Uniformed Services Former Spouses’ Protection Act (USFSPA) and 5 U.S.C. § 8435.

State Plan Expertise: We maintain current knowledge of TRS, TMRS, ERS, and San Antonio municipal pension plan requirements.

Step Five: Court Approval and Plan Submission

The court signs the proposed QDRO. Counsel submits the order to the plan administrator for qualification determination. If the plan administrator determines the order does not satisfy QDRO requirements, the court retains continuing jurisdiction to amend the order to achieve qualification.

This “correction” jurisdiction is essential. Minor drafting defects—incorrect dates, ambiguous benefit descriptions, noncompliant formatting—need not defeat the enforcement effort.

Step Six: Distribution and Satisfaction

Upon qualification, the plan administrator disburses the specified amount from the participant’s account balance directly to the alternate payee. The distribution is taxable to the alternate payee as ordinary income upon receipt .

The custodial parent receives funds; the obligor receives a credit against the arrearage judgment. The court may retain jurisdiction to ensure proper application of proceeds.

Attorney’s Fees, Costs, and Plan Fees: Who Pays?

Texas Family Code § 157.357 authorizes the court to order the obligor to pay:

• Reasonable attorney’s fees incurred by the party obtaining the QDRO
• All court costs
• All fees charged by the plan administrator for QDRO review and processing

These fees and costs are enforceable by any means available for enforcement of a judgment for debt.

Strategic Implication: The obligor who forces the custodial parent to litigate a child support QDRO faces potential liability not only for the arrears but also for the substantial legal and administrative costs of obtaining the order. This leverage is often the catalyst for negotiated resolutions.

Military Retirement and Child Support QDROs: San Antonio’s Unique Landscape

San Antonio’s Joint Base community—Fort Sam Houston, Lackland AFB, Randolph AFB—generates frequent intersections between military retirement benefits and child support enforcement.

Military Retired Pay and the 10 U.S.C. § 1408 Framework

Military retired pay is divisible as property in divorce under the Uniformed Services Former Spouses’ Protection Act. However, child support enforcement against military retired pay operates under distinct rules.

Child support QDROs against military retired pay are permissible but require compliance with:

• DFAS (Defense Finance and Accounting Service) regulations
• 10 U.S.C. § 1408(e)(4)(B) (limiting former spouse payments)
• Service-specific procedures (Army, Air Force, Navy, Marine Corps)

Waiver of Retired Pay for VA Disability: Critical complexity arises when the military member waives a portion of retired pay to receive non-taxable VA disability compensation. Waived retired pay is not paid by DFAS and is not subject to QDRO enforcement. Our attorneys analyze whether such waivers were made in good faith and, where appropriate, pursue alternative collection remedies.

Thrift Savings Plan (TSP)

The TSP—the federal government’s 401(k)-equivalent—is subject to child support QDRO enforcement. TSP maintains strict model order requirements. Deviation from the model order results in automatic rejection. Barton & Associates maintains current TSP model order templates and submission protocols.

Defective Prior Orders: The Court’s Continuing Jurisdiction

If a previously rendered domestic relations order does not satisfy the requirements of a QDRO—whether due to drafting defects, plan administrator determination, or changed circumstances—the court retains continuing jurisdiction over the parties to the extent necessary to render a qualified domestic relations order.

Critical Limitation: While courts possess broad jurisdiction to correct and clarify QDROs, they may not substantively change the underlying judgment. In the property division context, courts cannot use QDRO correction jurisdiction to impose obligations—survivor benefit plan designations, medical benefits, commissary privileges—never awarded in the original decree.

This limitation does not apply to child support enforcement QDROs in the same manner. Child support QDROs enforce a liquidated debt; they do not divide property. However, careful drafting remains essential to avoid impermissible modification of prior QDROs.

Tax Implications of Child Support QDRO Distributions

The QDRO Exception to Early Withdrawal Penalties

Distributions from qualified retirement plans to an alternate payee under a QDRO are exempt from the 10% additional tax on early withdrawals, regardless of the alternate payee’s age.

Ordinary Income Taxation

The alternate payee (custodial parent) receiving the distribution reports the full amount as ordinary income in the tax year received. Federal income tax is withheld at mandatory rates (typically 20% for lump-sum distributions).

Important: Child support payments themselves are not taxable to the recipient. Child support QDRO distributions ARE taxable. This distinction surprises many custodial parents. We counsel clients to anticipate tax liability and, where possible, structure distributions to include amounts sufficient to satisfy the resulting tax obligation.

Rollover Options

Alternate payees may be eligible to roll over QDRO distributions to their own IRA or eligible employer plan, deferring taxation until subsequent distribution. Rollover eligibility depends on plan terms and distribution form.

The Barton & Associates Advantage: Why San Antonio Chooses Us for Child Support QDROs

Pre-2021 Experience, Post-2021 Leadership: We represented clients in complex QDRO litigation years before the 2021 legislative expansion. When Subchapter J became law, we were immediately prepared to deploy this powerful tool for our clients.

Dual Competency: Child support QDROs sit at the intersection of family law, employment benefits law, tax law, and (in military cases) federal jurisdiction. Our firm maintains competency across all four domains.

Plan Administrator Relationships: We have established working relationships with plan administrators, recordkeepers, and in-house benefits counsel for major San Antonio employers. Our orders are reviewed and qualified efficiently because they conform to plan-specific requirements from the outset.

Military Retirement Expertise: No San Antonio family law firm surpasses our proficiency with military retirement benefits. We navigate DFAS, TSP, and service-specific procedures with precision and speed.

Cost-Effective Flat-Fee QDROs: For uncontested child support QDROs—where arrears are confirmed and the obligor does not oppose collection from retirement assets—we offer flat-fee QDRO preparation and qualification services. You receive certainty regarding legal investment and predictable outcomes.

Aggressive Enforcement Representation: When opposition requires litigation, we are prepared. We file motions, secure temporary restraining orders to preserve assets, obtain favorable rulings, and recover attorney’s fees from non-compliant obligors.

Common Questions About Child Support QDROs in San Antonio

Q: Can I obtain a child support QDRO if my divorce already included a QDRO dividing the same retirement account?
A: Yes. A prior property division QDRO does not shield retirement assets from subsequent child support enforcement. The court’s jurisdiction under § 157.501 applies regardless of whether the plan is subject to another QDRO.

Q: How much can be withdrawn from a retirement account through a child support QDRO?
A: The QDRO may withdraw amounts sufficient to satisfy the confirmed arrearage judgment, accrued interest, authorized attorney’s fees, court costs, and plan administrator fees. It cannot exceed the total amount due.

Q: Does the obligor pay income tax on the QDRO distribution?
A: No. The alternate payee (custodial parent) pays ordinary income tax on the distribution. This is a critical distinction from wage withholding, which is after-tax income for the obligor.

Q: Can a child support QDRO reach an IRA?
A: IRAs are not ERISA-qualified plans and are not subject to formal QDRO procedures. However, IRAs remain accessible through other child support enforcement mechanisms, including turnover orders and levy proceedings.

Q: How long does the QDRO process take?
A: Uncontested QDROs with accurate documentation typically require 4-8 weeks from motion filing to plan distribution. Contested QDROs require hearing scheduling and may extend 2-4 months. Temporary orders preserving assets are available immediately.

Q: What happens if the plan administrator rejects my QDRO?
A: The court retains continuing jurisdiction to amend the order to satisfy qualification requirements . Rejection is not final; it is a correctable procedural step.

Q: Can a child support QDRO be used to collect spousal maintenance arrears?
A: Yes. Subchapter H of Chapter 8, Texas Family Code, authorizes Maintenance QDROs under substantially identical provisions.

Q: Does the child’s age affect QDRO availability?
A: No. Child support arrears survive the child’s attainment of majority. The court retains jurisdiction to enforce the arrearage judgment through QDRO until fully paid.

Contact Our San Antonio Child Support QDRO Attorneys Today

House Bill 867 transformed child support enforcement in Texas. Retirement assets that were once beyond reach are now accessible. Custodial parents no longer must watch obligors maintain substantial retirement balances while children go without court-ordered support.

But this powerful tool requires knowledgeable counsel. A defective QDRO is no QDRO at all. An untimely motion permits asset dissipation. Failure to recover attorney’s fees leaves the custodial parent subsidizing the enforcement effort.

At Barton & Associates, we deliver the technical mastery, strategic foresight, and relentless advocacy that child support QDROs demand. Whether you are seeking to collect years of unpaid support or defending against a QDRO motion that threatens your retirement security, our attorneys are prepared.

Do not leave retirement assets—whether yours or your child’s—to chance. The law has given you powerful leverage. Use it with counsel who understand how to deploy it effectively.

Contact our San Antonio family law office today at 210-500-0000 to schedule a confidential consultation with a skilled child support QDRO attorney. You can also use our online Free Consultation form. Let us help you unlock the enforcement remedy Texas law now provides.

Main Category: Family Law
Practice Area Category: Child Support
Barton & Associates, Attorneys at Law
115 Camaron St, San Antonio, TX 78205
Office: 210-500-0000