Employee and Employer Contributions
In 401(k) plans like this one, both employee (participant) deferrals and employer contributions may be part of the marital asset division. However, only amounts earned during the marriage are typically divided.
The alternate payee (usually the non-employee spouse) can receive a portion of the participant’s balance as of the date of marital separation or another date agreed upon in the divorce. The QDRO must clearly spell out:
- Division method—percentage or fixed dollar amount
- Cut-off date for valuation
- Whether gains/losses are included

