The In-Marriage QDRO a/k/a The Happily Married Couple QDRO allows one spouse to transfer ERISA money (usually in a 401(k) or 403(b)) to the other spouse. The transfer is to an IRA for the receiving spouse, but it can be to cash.
There are many economic and legal reasons to do an In-Marriage QDRO. The most popular application is transferring assets from the older spouse to the younger spouse in order to defer RMD’s.
With an In-Marriage QDRO the spouses remain married, there is *no* 10% penalty and there is *no* suspension of contributions by the employer.
