1. Employee vs. Employer Contributions
Most 401(k) plans involve both employee deferrals and employer matching contributions. The QDRO must clearly outline whether the alternate payee (the former spouse) is receiving a portion of just the employee contributions, just the employer match, or both. If your divorce decree doesn’t say, this needs to be resolved before drafting the QDRO.
Employer contributions may also be subject to vesting schedules. For those going through divorce, it’s important to know that only vested portions are actually transferable via QDRO. Any non-vested amounts will revert back to the employee’s account or the employer upon separation from service.

