401k cash out

[divorced72008]

What is the name of your state (only U.S. law)? Delaware

I was recently divorced after 17 years of marriage, we are now going through the property settlement. I am asking for half of my ex-husbands 401k which is worth about 60,000 total. About 5 years ago, we had separated for 18 months. During that time, I cashed out my 401k without his knowledge, can he now ask for half of what I got, or even worth half of it's value before the penalties for early withdrawal?

 

[nextwife]

And how was that cash out handled on your TAXES? Did you create a huge tax liability that has not been dealt with, if this was dine in secret?

Cashing out any 401K prior to achieving the allowable age creates a significant tax consequence. And, if it any portion was accrued during the marriage, darned right there are consequences in the settlement.

 

[divorced72008]

They took the taxes right out of it immediately, reducing the check I received. SO there isn't any owed taxes on it. But I forged his signature on the form. We were separated at the times (Delaware doesn't do "legal separations") and he was living with another woman. But his lawyer is now asking for what the value was, basically, I think he's doing this because I am asking for half his. I thought that because we were still married at the time, and the money is gone, that he couldn't ask for it now.

 

[mistoffolees]

They took the taxes right out of it immediately, reducing the check I received. SO there isn't any owed taxes on it. But I forged his signature on the form. We were separated at the times (Delaware doesn't do "legal separations") and he was living with another woman. But his lawyer is now asking for what the value was, basically, I think he's doing this because I am asking for half his. I thought that because we were still married at the time, and the money is gone, that he couldn't ask for it now.

There are two conflicting issues here.

Under normal circumstances, if you take money out of a 401k while you're married and spend it, then it's gone and he would have no claim on it.

However, since you forged his signature, there may be fraud issues involved. In addition, if he knew about it and didn't do anything about it, there are statute of limitation issues. You should really discuss this with your attorney.

 

[Ohiogal]

They took the taxes right out of it immediately, reducing the check I received. SO there isn't any owed taxes on it. But I forged his signature on the form. We were separated at the times (Delaware doesn't do "legal separations") and he was living with another woman. But his lawyer is now asking for what the value was, basically, I think he's doing this because I am asking for half his. I thought that because we were still married at the time, and the money is gone, that he couldn't ask for it now.

Actually since you committed fraud then YES he could ask for half of it now. What did you spend the money on? You are aware you broke the law correct?