Vesting Schedules and Forfeitures
In a corporate profit sharing plan, employer contributions are often subject to a vesting schedule. That means the employee only “owns” a portion of those contributions until they meet certain service or tenure requirements. If a spouse is not fully vested at the time of divorce, only the vested portion can be divided in the QDRO.
It’s important to clarify with the plan administrator what percentage of the employer contributions are vested. Any unvested funds may be forfeited and cannot be awarded through a QDRO. This can significantly affect the value of the Alternate Payee’s share.

