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401k

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stevieboombatz

Junior Member
401k - how are 401k loans treated when splitting a 401k in a divorce?
If the man has $50k and the wife is entitled to 50% does she get $25k if he has a $10k loan against his 401k or does she only get 50% of the balance?
 


cbg

I'm a Northern Girl
They are treated the way the two parties (and their attorneys) agree to treat them.
 

cbg

I'm a Northern Girl
It's a legal fact. There isn't a single way that 401(k)s are always divided up in a QDRO. It's determined by the parties to the QDRO and approved by the judge. Either of the two options he's spelled out is possible. Neither is guaranteed.
 
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Bali Hai

Senior Member
It's a legal fact. There isn't a single way that 401(k)s are always divided up in a QDRO. It's determined by the parties to the QDRO and approved by the judge. Either of the two options he's spelled out is possible. Neither is guaranteed.
How did you determine OP is a he?

Furthermore, there was no consensus how the 401k was to be split in my case. The ex wanted more than she was entitled. Imagine that! I guess I am an anomaly.

The judge in my case as reluctant as he was decided that 50:50 was the way it should be divided and stressed to me he could have decided differently. What a great big favor he did for me! :rolleyes:
 
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LdiJ

Senior Member
401k - how are 401k loans treated when splitting a 401k in a divorce?
If the man has $50k and the wife is entitled to 50% does she get $25k if he has a $10k loan against his 401k or does she only get 50% of the balance?
What the 10k loan paid for would matter to a great extent. For example, if the 10k loan paid for a car that the man is keeping, then that debt is his responsibility, so in that case she would probably get 25k.

If the 10k loan pad for marital debt (credit cards etc that they both used) then they are both responsible for the debt, so in that case it would be more likely that she would get 20k.

Those are just a couple of examples, but hopefully that will give you an idea of how things might work.
 

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