1. Are There Employer Contributions to Divide?
Many 401(k) plans include employer-matching contributions. However, not all of those may be “vested” at the time of divorce. In the Three Perfect Pear Bistro Corp. 401(k) Plan, you must determine:
- What portion of employer contributions is vested
- Whether the non-vested portion can be divided or will be forfeited
- How the vesting schedule applies through the date of divorce or distribution
Your QDRO must clearly state whether the alternate payee gets a share of only the vested balance or a pro rata share that includes future vesting tied to pre-divorce employment.

