No. The first RMD for these funds will be in 2018 based on 12/31/2017 IRA balance. However, if the participant retires before the end of 2017 it will result in 2017 becomes participant’s first RMD distribution year. The direct rollover to the ex spouse’s IRA is considered a distribution with respect to the participant’s RMD obligation. If 40,000 is the participant’s RMD for 2017 based on the 1mm balance, then 40,000 of the 500k direct rollover would not be an eligible rollover distribution to the ex spouse and would become taxable. Ex spouse would end up with a tax bill for 40,000 on line 16b of Form 1040 and would have to remove 40,000 from her IRA as an excess IRA contribution with allocated earnings. Therefore, retirement this year would impact ex spouse more than the participant. See 1.401a(9)-8, Q 6 c) here:

(c) If a QDRO does not provide that an employee‘s benefit is to be divided but provides that a portion of an employee‘s benefit (otherwise payable to the employee) is to be paid to an alternate payee, such portion will not be treated as a separate account (or segregated share) of the employee. Instead, such portion will be aggregated with any amount distributed to the employee and will be treated as having been distributed to the employee for purposes of determining whether section 401(a)(9) has been satisfied with respect to that employee.

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