Employee vs. Employer Contributions
Most 401(k) plans include both employee deferrals (the money the participant contributes from their paycheck) and employer contributions (matches or discretionary contributions). A common mistake in divorce agreements is failing to specify whether the alternate payee (usually the spouse) is entitled to just the employee portion or both.
Many clients assume that “half the account” includes everything. But depending on the plan rules, employer contributions might be subject to vesting schedules (more on that below), which can affect the amount actually divisible through the QDRO. We always review these with the plan administrator to ensure your order reflects what the law and the plan both allow.

