Employee vs. Employer Contributions
Most 401(k) accounts include both employee deferrals and employer contributions. In a divorce, a common mistake is to divide the total account without evaluating how much of the employer portion is vested. Unvested employer contributions typically revert back to the employee’s account or are forfeited. Your QDRO should explicitly address whether the alternate payee (the spouse receiving a share) is entitled only to vested amounts or to forfeited contributions as well, if and when they do vest post-divorce.

