1. Employee Contributions vs. Employer Contributions
The plan participant’s own pre-tax or Roth contributions are generally 100% vested and therefore fully divisible. However, employer contributions might be subject to a vesting schedule. It’s critical to:
- Identify what portion of the employer contribution is vested as of the divorce or QDRO date
- Clarify that only vested amounts are divisible unless agreed otherwise
Failing to account for these details can result in the alternate payee receiving less than expected.

