Employee vs. Employer Contributions
Divorcing spouses often assume the retirement account belongs entirely to the participant. However, many plans also include employer matching or profit-sharing contributions. In the Brimstone Wfg Holding Company, LLC 401(k) Plan, employer contributions may be subject to a vesting schedule. If some of those contributions are unvested at the time of divorce, they may be forfeited or later become property of only the participant spouse. The QDRO needs to account for this possibility.
Make sure you identify:
- Whether employer contributions are included in the division
- What portion is vested as of the division date
- What happens to unvested amounts if the participant stays employed

