1. Dividing Employee and Employer Contributions
The Edgewater Equity, LLC Profit Sharing Plan may include both employee deferrals (similar to 401(k) contributions) and employer profit sharing contributions. Generally, an employee’s contributions and the earnings on them are 100% vested, but employer contributions are often subject to a vesting schedule.
In your QDRO, you’ll need to clearly define:
- Whether the alternate payee receives a flat dollar amount or a percentage of the entire account
- Whether that percentage includes only vested portions or also includes future vesting
- How to handle unvested employer contributions if they are forfeited after divorce
We often recommend language that addresses what happens if the participant becomes fully vested after the divorce but before plan division is processed—so your rights are protected regardless of timing.

