Employee vs. Employer Contributions
Most 401(k) plans include both employee salary deferrals and employer profit-sharing contributions. Under divorce law, both types can be divided, but the QDRO needs to clarify which are included:
- If the QDRO divides only the account balance, both employee and vested employer contributions are usually included.
- If the QDRO specifies a date-based or percentage division, the separating spouse is entitled to a share of the account value as of the date of division (often the separation or divorce date).
This stresses the importance of using a valuation date that reflects the marital period and obtaining clear participant statements around that time.

