Your Rights to the Fortune Brands Innovations Retirement Savings Plan: A Divorce QDRO Handbook

401(k) plans commonly include:

• Employee Deferrals: These are contributions made from the participant’s salary and are always 100% vested.
• Employer Matching Contributions: These may be subject to a vesting schedule, meaning the participant earns rights to them over time.

In your QDRO, it’s critical to spell out whether the alternate payee spouse is receiving only vested amounts or a share of all contributions, which may include non-vested portions. If the nonparticipant spouse is awarded a percentage, some of that percentage can be lost due to unvested employer contributions unless the QDRO explicitly states otherwise.

Many employees don’t fully vest in their employer contributions until after several years of service. If you’re not careful in the way the QDRO is worded, a portion of the account the alternate payee was expecting may never materialize. To avoid this, your QDRO should define whether it includes just the vested balance as of a specific date or all employer contributions regardless of vesting status.

401(k) plans like this often permit plan loans. The loan balance reduces the account balance that shows to the alternate payee—but should the loan be considered marital debt or not?

A properly drafted QDRO can either:

• Assign the net balance (after subtracting outstanding loans), or
• Ignore the loan, recognizing a percentage of the gross balance

Some attorneys forget to consider loans when dividing a 401(k), leading to confusion and disputes after the divorce. Don’t make that mistake.

Another layer of complexity in the Fortune Brands Innovations Retirement Savings Plan is likely to be the presence of both traditional pre-tax and Roth after-tax contributions. The tax treatment of these accounts is different:

• Traditional 401(k): Taxes are deferred until withdrawal
• Roth 401(k): Contributions are made after-tax; qualified withdrawals are tax-free

A QDRO that doesn’t clearly separate amounts going to the alternate payee from which type of account can jeopardize tax planning. Always define how the split applies between Roth and non-Roth funds.

Request the Summary Plan Description, QDRO procedures, and account statements. Make sure you verify the employer’s official name— Fortune brands innovations, Inc. —and get the correct Plan Number and EIN, which are required for the QDRO document.

You’ll need a correctly worded Qualified Domestic Relations Order, tailored to the specifics of this 401(k) plan. It should reference the plan’s exact name: Fortune Brands Innovations Retirement Savings Plan.

Don’t rely on a generic QDRO form. Mistakes are common and costly. Instead, ensure your QDRO covers all the account types, loan balances, and vesting issues we discussed above.

Some plan administrators allow preapproval of QDROs before the divorce is finalized. This helps avoid post-divorce delays and rework. Find out if the Fortune Brands Innovations Retirement Savings Plan allows preapproval and take advantage of that step if available.

Once the QDRO is properly drafted and reviewed, submit it to the court for signature. The QDRO becomes a legal order only after the judge signs and the document is entered into your divorce record.

After the QDRO is signed, send it to the plan administrator following the procedures provided in the plan documents. Follow up to confirm it is accepted and implemented promptly. Delays or rejection are common if the QDRO isn’t properly tailored to plan requirements.