1. Differentiating Between Employee and Employer Contributions
A common mistake is assuming all funds in a 401(k) are marital. Employee contributions, which come directly from paycheck deductions, are typically fully vested and therefore subject to division. Employer contributions, however, often follow a vesting schedule tied to years of employment. In the Greenfield Research, Inc.. 401(k) Plan, it’s important to verify which employer contributions are vested at the time of divorce. Unvested portions are usually forfeited if the employee leaves the company prematurely, and may not be divisible via QDRO.

