Employee and Employer Contributions
The Kace Entertainment 401(k) Plan likely includes both employee deferrals and employer matching contributions. One major issue in dividing this type of plan is whether unvested employer contributions are included in the division. Many plans have vesting schedules, meaning employer contributions only become the participant’s property after a certain number of years.
When drafting your QDRO, you need to decide:
- Do you want to divide only the vested balance?
- Should the alternate payee share in unvested future vesting?
Some couples agree to divide only what’s vested as of the date of divorce. Others allow future vesting based on marital service. Either approach is fine—but it needs to be spelled out clearly.

