1. Employee and Employer Contributions
Most 401(k) plans are comprised of employee deferrals (salary withholdings) and employer matching contributions. However, employer contributions are often subject to a vesting schedule. In a divorce, only the vested portion of the account can be divided through a QDRO. Any non-vested employer funds may be forfeited if the employee leaves the company before fully vesting.
Make sure your QDRO clearly states whether it divides the account based on the total balance or only vested funds. This could significantly affect what the alternate payee (the former spouse) receives.

