1. Employee vs. Employer Contributions
In a 401(k)/profit-sharing plan structure like this one, both the employee’s deferrals and the employer’s contributions must be evaluated. Employee deferrals (what’s withheld from paychecks) are always 100% vested. But employer contributions might be subject to a vesting schedule, which means a portion of that benefit may not be retained by the employee if they leave before meeting time or service requirements.
This matters in divorce. If you’re dividing the plan, make sure the QDRO clearly states whether unvested employer contributions should be included or excluded. Most QDROs will only assign vested amounts unless otherwise negotiated or ordered by the court.

