Employee vs. Employer Contributions
401(k) plans usually contain two types of contributions:
- Employee contributions – amounts the employee voluntarily defers from their paycheck.
- Employer contributions – match or profit sharing, often subject to a vesting schedule.
In divorce, the QDRO can award a portion of the entire account, or separate percentages from employee and employer sources. But here’s a big issue: Any unvested employer contributions generally stay with the employee spouse. If the employee is only 40% vested, the QDRO can only divide that vested share—unless both parties agree otherwise and account for potential forfeiture.

