Vesting Schedules and Forfeitures
Most 401(k)s, especially in business entities like this one, include employer contributions that follow a vesting schedule. Only vested amounts can be divided through the QDRO. If the participant is not fully vested at the time of divorce, any non-vested employer contributions may be forfeited and thus excluded from division.
This makes the QDRO’s valuation date especially important. A wrong date can result in the alternate payee missing out on benefits—or erroneously claiming more than was legally available.

