1. Employee vs. Employer Contributions
Most 401(k) plans include both employee deferrals and employer matches or profit-sharing contributions. In a divorce, the QDRO can allocate just the employee’s portion or include the employer contributions, depending on the agreement. However, employer contributions are often subject to a vesting schedule. If a portion of the employer match is unvested, it may not be available to divide—and those funds may be forfeited entirely when the participant leaves the company.

