Employee vs. Employer Contributions
401(k) accounts often include both employee deferrals and employer matching contributions. A well-drafted QDRO should state whether the alternate payee (ex-spouse) is awarded a portion of all contributions or only those that are vested or earned during the marriage.
For example, if a participant had a portion of employer contributions that were not fully vested at the date of separation or divorce, it’s important to clarify whether the awarded share includes or excludes those amounts. Unvested contributions may be forfeited if the employee leaves the company before meeting vesting requirements.

