Employee vs. Employer Contributions
In many 401(k) plans—including the Cm3 Holdings LLC 401(k) Profit Sharing Plan & Trust—there are both employee contributions (funds the employee defers from their paycheck) and employer contributions (amounts the company adds, often based on a match or profit-sharing formula). When dividing this account in a QDRO, you’ll need to determine whether you’re dividing all contributions or only the portion that was earned during the marriage.
It’s common to use what’s called a “coverture formula” to divide only the marital share. This formula accounts for how long the employee participated in the plan during the marriage compared to overall participation. This is especially important in the General Business industry, where jobs may have high turnover or varying contribution amounts.

