Employee and Employer Contributions
One of the key issues in any QDRO is distinguishing between employee deferrals and employer contributions. Here’s why:
- Employee Contributions are fully owned by the participant and will typically be 100% divisible in a QDRO.
- Employer Contributions may be subject to a vesting schedule. Only the vested portion belongs to the participant and can lawfully be divided.
If employer contributions are not yet fully vested, the non-vested portion will be forfeited if the employee leaves the company. This may result in a lower division for the alternate payee (the ex-spouse). Your QDRO should clarify that only the vested portion is divided to avoid disputes or confusion.

