Employee vs. Employer Contributions
Employee contributions are typically 100% vested immediately, so they’re usually marital property if contributed during the marriage. However, employer contributions are often subject to a vesting schedule. For example, a common schedule is 20% vested after 2 years, 40% after 3, and so on. Only the vested portion of employer contributions can be divided in most QDROs.
Make sure your QDRO distinguishes between these types if unvested funds are present when the order is entered. We often include language that awards a percentage of all contributions “to the extent vested” as of the valuation date.

