Employee vs. Employer Contributions
In a divorce case involving the Area Storage & Transfer Inc.. Prevailing Wage Plan, one of the first things we review is the breakdown between employee contributions (the participant’s deferrals) and employer contributions (such as matching or profit-sharing). Generally speaking, employee contributions are always fully vested and subject to division under a QDRO.
Employer contributions, however, may be subject to a vesting schedule. That means some of the funds may not be fully earned by the participant. In that case, the alternate payee (typically the former spouse) would only be able to receive a share of the vested portion.

