Employee vs. Employer Contributions
Most 401(k) accounts include both employee deferrals and employer contributions. In divorce, both are subject to division, but employer contributions may not always be fully vested. If the employee spouse hasn’t met the vesting criteria, then the alternate payee may only be entitled to the vested portion. Your QDRO should clearly define:
- The valuation date (e.g., date of separation or another agreed date)
- Whether the division is based on a percentage or set dollar amount
- How unvested employer contributions are treated

