1. Employee and Employer Contributions
Most 401(k) accounts include both amounts the employee has contributed and those the employer has matched. However, employer contributions are sometimes subject to a vesting schedule. That means the employee may not be entitled to the full employer match until they’ve worked at the company for a certain number of years. If you’re the alternate payee, knowing what portion is vested at the time of divorce matters.
In your QDRO, you can ask to receive a flat dollar amount, a percentage of the total account, or a portion of contributions made during the marriage. Make sure the language clearly explains how to treat non-vested employer funds—do they stay with the employee spouse, or will you receive a proportion of them if they become vested post-divorce?

