1. Dividing Employer vs. Employee Contributions
Profit sharing plans often include a mix of employee salary-deferred contributions and employer-paid amounts. It’s crucial to distinguish between the two in your QDRO. Why? Because employer contributions may be subject to a vesting schedule, meaning the participant may not “own” all of those funds at the time of divorce. A QDRO must clearly state whether the division includes just the vested portion or also a share of any non-vested funds, if they become vested later.

