1. Employer vs. Employee Contributions
The employee’s contributions (and earnings on them) are typically fully vested and divisible in a divorce. That means the alternate payee can receive a share of these funds without dispute. However, employer contributions—especially in profit sharing arrangements—may be subject to a vesting schedule. If these funds are unvested at the time of divorce or QDRO implementation, they may not be available for division.
Always find out:
- What portion of the employer contributions is vested?
- What is the vesting schedule?
- Was the employee actively employed at the time of divorce to continue vesting?

