1. Division of Employee and Employer Contributions
Profit sharing plans like the Kingham Dalton Wilson Employee Profit Sharing Plan & Trust often include both employee contributions (if applicable) and employer contributions. While the employee’s part is usually 100% vested and relatively easy to divide, employer contributions are subject to vesting schedules. That means some amounts may not be fully earned at the time of divorce.
Your QDRO will need to clearly define how to handle these different types of contributions. For example:
- Should the alternate payee (typically the ex-spouse) receive a share of only the vested amount?
- Or should the QDRO include a provision to share in future vesting?
Plan administrators may vary on how they want this phrased and whether they allow shared future vesting. That’s why a customized QDRO—not a generic template—is so important.

