Employee vs. Employer Contributions
QDROs must specify how much of the account will be given to the former spouse (also known as the alternate payee). There are usually two types of contributions in 401(k) plans:
- Employee contributions: These are always 100% vested and available to divide, assuming they were made during the marriage.
- Employer contributions: These often have a vesting schedule. Unvested portions may not be included in the division, depending on the plan terms and your settlement agreement.
One major mistake we often see? Assuming employer contributions are completely divisible. If they’re not vested, they might not be part of the marital estate. That’s why it’s important to confirm vesting status before finalizing your QDRO.

