1. Splitting Employee and Employer Contributions
With a 401(k) plan like this, contributions come from both the employee (voluntary deferrals) and the employer (matching or fixed contributions). A qualified domestic relations order can cover all or part of these contributions, depending on the agreement between divorcing spouses.
Most QDROs will state that the alternate payee (usually the non-employee spouse) is entitled to a percentage or flat dollar amount of the participant’s account. It’s critical to specify whether this includes both employee and employer contributions. You also need to be clear about the date used for valuation—a common choice is the date of separation or the date of divorce.

