1. Dividing Employee and Employer Contributions
In a 401(k) plan, employee contributions are often 100% vested, but employer contributions may be subject to a vesting schedule. In your QDRO, be clear about whether the alternate payee is receiving a percentage of the vested account balance only or a percentage of the full account balance. Clarity matters, especially with plans that continue to vest after the divorce.
- If the participant is not fully vested, unvested employer contributions may be forfeited when they leave their job, and the alternate payee might never receive that portion.

