Employee vs. Employer Contributions
Profit sharing plans typically include both employee deferrals and employer contributions. In many cases, the employee’s contributions are 100% vested immediately, while the employer’s contributions may be subject to a vesting schedule. A QDRO can only divide the portion that is vested as of the cutoff date (often the date of separation or divorce). If the order mistakenly includes unvested assets, the alternate payee may not receive what they expect—and that can lead to costly disputes.

