1. Dividing Contributions
Many 401(k) plans include both employee and employer contributions. In a divorce, it’s essential to specify whether the alternate payee is receiving a share of just the employee contributions (which are always 100% vested) or also part of the employer match. If employer contributions are subject to a vesting schedule, then only the vested portion can be divided under the QDRO.
We always confirm the vesting schedule with the plan administrator before drafting the QDRO. This prevents misunderstandings about what portion the alternate payee is actually entitled to.

