1. Dividing Employee and Employer Contributions
Employee contributions are usually 100% vested and divisible unless otherwise specified in your divorce settlement. Employer contributions, however, may be subject to a vesting schedule based on years of service. If the employee spouse hasn’t met the vesting criteria at the time of divorce, part of the employer-contributed balance might not be assignable to the alternate payee (the non-employee spouse).
A QDRO for the Fw Fleet Clean LLC 401(k) Plan needs to clearly state whether the division includes just the vested balance or the entire account, including potentially forfeitable funds.

