1. Employee vs. Employer Contributions
Employee contributions made through salary deferral are typically 100% vested and subject to division. However, employer matching or profit-sharing contributions may be subject to a vesting schedule. If the employee spouse isn’t fully vested at the time of divorce, the non-employee spouse could receive a smaller share than expected.
Double check the plan documents and vesting schedule. If a portion of the account is forfeitable, it must be excluded from the alternate payee’s award, or the QDRO must specify it’s subject to forfeiture depending on final vesting status.

