Dividing Employee vs. Employer Contributions
Most divorcing spouses focus on the total plan balance, but not all of it may be divisible. In a 401(k), the employee’s salary deferrals are always 100% vested. Employer contributions, however, can be subject to vesting schedules. That means if your spouse hasn’t reached a certain number of years of service, only part of those employer contributions may be included in the marital portion.
A well-drafted QDRO should specify whether it’s dividing the total account or only the vested portion. At PeacockQDROs, we help you understand what’s really on the table so your order divides the correct amount.

