1. Employee vs. Employer Contributions
One major factor to consider is the distinction between employee and employer contributions. The participant’s own contributions are generally considered marital property and divisible, but matching or profit-sharing contributions may be subject to a vesting schedule.
If the employee is not fully vested at the time of divorce, only the vested portion of the employer contributions can be included in the QDRO unless alternative arrangements are made. It’s critical to confirm the participant’s vested balance as of the agreed division date.

