Employee vs. Employer Contributions
This plan likely includes both types of contributions:
- Employee contributions: These are typically 100% vested immediately and easier to divide through QDRO.
- Employer contributions: These may be subject to a vesting schedule. This means the employee must work a certain number of years to keep those funds. Any unvested portions at the time of divorce aren’t divisible.
When drafting the QDRO, it’s critical to specify how much of the account is subject to division and whether only vested amounts—or the entire account balance—are to be shared. A poorly written QDRO can result in the alternate payee receiving less than expected, or even nothing at all if vesting isn’t taken into account.

