Employer Contributions and Vesting Schedules
One main issue in dividing the The Greentree Group, Inc.. Profit Sharing Plan is only awarding the alternate payee (the former spouse) the share of benefits that the employee was vested in at the time of divorce. Many profit sharing plans have a vesting schedule—meaning not all employer contributions belong to the employee until certain years of service have been met.
When drafting the QDRO, we account for the employee’s current vested balance versus the total account balance. Any unvested amounts should not be included unless and until they vest, depending on state law and how the parties agree to divide them.

