Do I have to give half of my 401K in a divorce?

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Latest post Wed, Jul 21 2010 6:19 PM by adjuster jack. 8 replies.
  • Wed, Jul 21 2010 4:52 PM

    • CEPJR
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    Do I have to give half of my 401K in a divorce?

    Do I have to give half of my 401K in a divorce?

  • Wed, Jul 21 2010 5:53 PM In reply to

    Re: Do I have to give half of my 401K in a divorce?

    It depends how long you were married for. Can you give us more details? If it was a long term marriage in a community property state..then maybe.

  • Wed, Jul 21 2010 5:55 PM In reply to

    • CEPJR
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    Re: Do I have to give half of my 401K in a divorce?

    Married for 6 years. Married in the state of maryland, but now live in virginia

  • Wed, Jul 21 2010 5:59 PM In reply to

    Re: Do I have to give half of my 401K in a divorce?

    Generally,  your 401(k) from date of marriage to date of separation.

  • Wed, Jul 21 2010 6:06 PM In reply to

    • CEPJR
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    Re: Do I have to give half of my 401K in a divorce?

    If thats the case, that wouldn't be fair.  I would have to take a 30% penalty for early withdraw and then pay taxes

  • Wed, Jul 21 2010 6:08 PM In reply to

    Re: Do I have to give half of my 401K in a divorce?

    Generally, you divide everything equally.

    But you can negotiate an offset.

    For example: If you have accumulated 100,000 in your 401k since you got married and your house has accumulated 100,000 in equity since you got married you might be able to give the house to your spouse and you keep the entire 401k.

    That's just an example. How you actually end up depends on your assets and debts and what you can negotiate.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Wed, Jul 21 2010 6:10 PM In reply to

    Re: Do I have to give half of my 401K in a divorce?

    CEPJR:
    If thats the case, that wouldn't be fair.  I would have to take a 30% penalty for early withdraw and then pay taxes

    No.

    A QDRO would allow the custodian of your account to split it in half and you would each then have individual 401K accounts that your spouse would have to roll over into an IRA and you both would avoid the taxes and penalties because there would be no taxable distribution.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Wed, Jul 21 2010 6:12 PM In reply to

    • CEPJR
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    • VA
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    Re: Do I have to give half of my 401K in a divorce?

    Ok. because we are selling the house. no profit.  My debt total to about 70K. Her debt is about 10K. 401K is only 20K. Savings depleted. Only living check to check now

  • Wed, Jul 21 2010 6:19 PM In reply to

    Re: Do I have to give half of my 401K in a divorce?

    Technically, she would get half your debt and you would get half of hers (not counting any debt that you brought to the marriage).

    Seems to me you could offer to keep a larger amount of the debt in exchange for keeping your 401K intact. Otherwise you'd each walk away with half of the combined 90K debt.

     

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
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