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  1. #1
    scottie is offline Junior Member
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    401k disbursement

    State I reside in: Virginia

    How long does a former spouse have to set up an account to take half a 401k from divorce settlement? The divorce has been final for over 6 months and after being reminded at the entering of the final decree, it has still not been done. I would like to take my half and put it somewhere else and know at what point it all belongs to me. I realize it has not been long enough yet, but does anyone know how long I have to wait?

    Thank you.
    Last edited by scottie; 02-06-2006 at 08:07 AM. Reason: add state
  2. #2
    LdiJ is online now Senior Member
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    Quote Originally Posted by scottie
    State I reside in: Virginia

    How long does a former spouse have to set up an account to take half a 401k from divorce settlement? The divorce has been final for over 6 months and after being reminded at the entering of the final decree, it has still not been done. I would like to take my half and put it somewhere else and know at what point it all belongs to me. I realize it has not been long enough yet, but does anyone know how long I have to wait?

    Thank you.
    Its not really a question of "setting up an account". Its a question of dividing the funds via a QDRO. One of the attorneys was ordered to handle that...so whichever one was, should be handling it.
  3. #3
    cbg
    cbg is offline Senior Member
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    Unless established by state law, which is unlikely since 401k's are administered under Federal law, I don't believe there is a specific time frame required under the law.
  4. #4
    scottie is offline Junior Member
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    The other attorney was ordered to set it up. I am not trying to be dishonest just figure out how long I have to wait before removing the funds that do belong to me and if there is a time limit for it to be done. I can imagine 3 years from now it will still be the same.
  5. #5
    scottie is offline Junior Member
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    Exclamation

    ok, i did a bit more research, The real question I am asking is there a statue of limitations on setting up the QDRO? That has not even been done yet.

    Thank you.
  6. #6
    Bali Hai is offline Senior Member
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    Quote Originally Posted by scottie
    ok, i did a bit more research, The real question I am asking is there a statue of limitations on setting up the QDRO? That has not even been done yet.

    Thank you.
    No. It's the same as any judgement. Usually the attorney of the party with the 401k that is to be split DOES NOT draft the QDRO.

    It is usually ordered that the receiving party's attorney does this at no cost.

    That way if you are the receiving party, you can hound your attorney until it gets done.

    Now you have to ask your attorney to hound the other attorney or complain to the court or both.
  7. #7
    scottie is offline Junior Member
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    Then can I take my portion of the 401K out and put it elsewhere and leave the other half there?
  8. #8
    Bali Hai is offline Senior Member
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    Quote Originally Posted by scottie
    Then can I take my portion of the 401K out and put it elsewhere and leave the other half there?
    The 401k will be split per the QDRO into seperate accounts. The account administrator will inform you when this happens or is about to happen.

    You have no control over the account in that regard.

    What do you mean, "leave" the other half there???
  9. #9
    scottie is offline Junior Member
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    What I mean is that I would like to take my half of the 401k and invest it into a more agressive fund. I have no interest in touching the other half. I would however like this taken care of as it is one more string I do not want hanging out there.
  10. #10
    cbg
    cbg is offline Senior Member
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    Then ask your attorney to check into it. As I said, there is no mandated SOL on the QDRO.
  11. #11
    scottie is offline Junior Member
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    Thank you.
  12. #12
    Bali Hai is offline Senior Member
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    Quote Originally Posted by scottie
    What I mean is that I would like to take my half of the 401k and invest it into a more agressive fund. I have no interest in touching the other half. I would however like this taken care of as it is one more string I do not want hanging out there.
    You are bound by the same 401k rules as the participant. If the account is self-directed" you can probably invest in a more aggressive fund, if it is offered.

    You can't "touch" the other half anyway, so why even make that statement??

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