1. Contributions: Who Owns What?
The plan includes both employee and employer contributions. Employee contributions are almost always 100% vested immediately—meaning they belong fully to the participant. However, employer contributions may follow a vesting schedule. That matters a lot.
- If your divorce agreement includes a division of the full account value, you may not actually receive part of the unvested amounts.
- A well-written QDRO should specify whether only vested funds are divided or whether the alternate payee (the non-employee spouse) is entitled to a share of future vesting.
Be conscious that what’s in the plan today might not be fully divisible tomorrow.

