A Qualified Domestic Relations Order (QDRO) is a court order that recognizes a spouse's right to receive a portion of the other spouse's retirement benefits. It's crucial in dividing many types of retirement assets because it instructs the plan administrator on how to pay the benefits, protects the non-employee spouse's rights, and ensures the division complies with federal laws. QDROs are typically required for dividing 401(k)s and pension plans, but not for IRAs.