1. Employee vs. Employer Contributions
In most 401(k) plans including the Hearthstone at Murrayhill LLC 401(k) Profit Sharing Plan & Trust, both employees and employers may contribute to the retirement account. A proper QDRO must address how both types of contributions are treated in the asset division. Often, participants contribute throughout the marriage, while employer contributions may come in the form of matches or profit sharing.
Make sure your QDRO distinguishes:
- Which contributions are marital vs. separate property
- Which portion the alternate payee (non-employee spouse) is entitled to
- Whether any contribution post-separation is excluded

