Updated November 8, 2026. Quick answer: TCDRS treats a member’s benefit as community property, and a court that awards a share to a former spouse must use a Qualified Domestic Relations Order on the TCDRS model form. Before retirement the order must award a percentage, not a dollar amount, and for orders filed on or after January 1, 2018 TCDRS creates a separate account for the former spouse once it approves the order. After retirement, the retiree’s benefit is divided into two lifetime benefits.
What the order is called and what governs it
TCDRS says: “QDROs involving members of TCDRS also are governed by the provisions of Chapter 109 of Title 34 Part V of the Texas Administrative Code and Chapter 804 of the Texas Government Code.” On ownership: “Your benefit is considered community property, which means your former spouse has a joint interest in your retirement account.”
The model form
“TCDRS has adopted a model QDRO form and we encourage all parties to use this form.” “QDROs submitted in a format other than the TCDRS model QDRO will be rejected.”
Before retirement: what the order divides
“The decision set forth in the QDRO divides any benefit on the basis of the deposits made by the member during the marriage and any interest those deposits earned”. “TCDRS will not accept a QDRO that awards a specific dollar amount.” “For QDROs filed on or after January 1, 2018, a separate account is created for the alternate payee once TCDRS approves a domestic relations order.”
The former spouse’s withdrawal
“The alternate payee may withdraw the benefit awarded under the QDRO any time after the order is approved by TCDRS.” “By withdrawing, the Alternate Payee forfeits all employer-provided benefit credits.”
After retirement
TCDRS says: “the retiree’s benefit is divided into two lifetime benefits.” The post-retirement model order adds: “In the event that Retiree is eligible for any future cost-of-living adjust-ments (COLAs), they will be awarded to Retiree and Alternate payee based on the percentage awarded.”
If someone dies, and the 90-day rule
“All payments to Alternate Payee under the order shall terminate upon Alternate Payee’s death, and Alternate Payee’s beneficiary may be entitled to a benefit under §109.7.” On timing of court action: “Unless documentation has been submitted to the system showing that action has been commenced before the end of the 90-day period, the order will not be considered a qualified domestic relations order”.
Taxes
“Alternate Payee must report any retirement payments received on any applicable income tax return”.
Federal tax on a divorce-order payment
IRS Publication 575 describes the federal rule for a payment under a QDRO: “A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if they were a plan participant”. The Form 5329 instructions list the early-distribution exception for “Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (doesn’t apply to IRAs)”. Whether your system’s order is treated as a QDRO for these purposes is a question for a tax preparer; the exception is explained on the Form 5329 exception code 06 page.
What the documents read for this page do not settle
- The text of Chapters 804 and 845 of the Texas Government Code could not be read directly, and the TCDRS rule (Title 34, Chapter 109) was read only as it appears inside the model orders.
- The TCDRS documents read for this page print no fee for reviewing or dividing an order and describe no pre-approval service.
- They do not say what a retiree’s death does to the former spouse’s separate post-retirement benefit beyond the model-order text above.
Common mistakes
- Awarding a dollar amount. TCDRS says it will not accept a QDRO that awards a specific dollar amount.
- Drafting your own form. TCDRS says orders submitted in another format will be rejected.
- Forgetting that withdrawing the awarded money forfeits employer-provided benefit credits.
Related: TCDRS retirement decisions, the QDRO checklist before you sign, and shared interest versus separate interest.
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Answer againSources
- Texas County & District Retirement System, Getting Divorced Before Retirement (QDRO instructions): www.tcdrs.org
- Texas County & District Retirement System, Pre-Retirement Qualified Domestic Relations Order (model order): www.tcdrs.org
- Texas County & District Retirement System, Post-Retirement Qualified Domestic Relations Order (model order): www.tcdrs.org
- Internal Revenue Service, Publication 575, Pension and Annuity Income (for 2025 returns): www.irs.gov
- Internal Revenue Service, Instructions for Form 5329: www.irs.gov
Read from the primary documents linked above on November 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.