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401k disclosure

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vitapaks

Junior Member
What is the name of your state (only U.S. law)? mi.

my wife of 21 years left me with 3 kids and moved away with her boyfriend just out of prison. nice right?
the divorce is days away from being complete and I found a 401k she had
hidden. todays value 7,000. She did not disclose this and lied on her disclosure forms, friend of the court, attorneys , judge and myself. Value of 401k at time of disclosure was 14,000.

What can be done?
Can I prosecute?
I am broke filing bankruptcy to feed kids, loosing my home, and money is so tight it is hard to believe. i could sure use some of that so how could I recover any?
 


mistoffolees

Senior Member
What is the name of your state (only U.S. law)? mi.

my wife of 21 years left me with 3 kids and moved away with her boyfriend just out of prison. nice right?
the divorce is days away from being complete and I found a 401k she had
hidden. todays value 7,000. She did not disclose this and lied on her disclosure forms, friend of the court, attorneys , judge and myself. Value of 401k at time of disclosure was 14,000.

What can be done?
Can I prosecute?
I am broke filing bankruptcy to feed kids, loosing my home, and money is so tight it is hard to believe. i could sure use some of that so how could I recover any?
You can sue for your share of it. However, you should bring it up at the final hearing. Since you now know about it, if you don't say anything until after the divorce is filed, you're just as guilty as she and it will be harder to collect.

There's another problem. Today's value is $7 K, but it was $14 K at the time of disclosure? How long have you known about it? If you've known about it very long (which is implied by those two figures), you should have said something earlier.

However, be aware that you're not going to get a lot. You'll get 1/2 of today's value (unless the judge awards you the whole thing to punish her which isn't all that likely) or $3,500. BUT, that's pretax money. If you take that money out now, you're going to pay taxes on it as well as a significant penalty, so you'll be lucky to get $2 K. If you do get some or all of it, transfer it into your own IRA (direct transfer via QDRO rather than withdrawing the money and re-depositing it) and leave it there.
 

LdiJ

Senior Member
You can sue for your share of it. However, you should bring it up at the final hearing. Since you now know about it, if you don't say anything until after the divorce is filed, you're just as guilty as she and it will be harder to collect.

There's another problem. Today's value is $7 K, but it was $14 K at the time of disclosure? How long have you known about it? If you've known about it very long (which is implied by those two figures), you should have said something earlier.

However, be aware that you're not going to get a lot. You'll get 1/2 of today's value (unless the judge awards you the whole thing to punish her which isn't all that likely) or $3,500. BUT, that's pretax money. If you take that money out now, you're going to pay taxes on it as well as a significant penalty, so you'll be lucky to get $2 K. If you do get some or all of it, transfer it into your own IRA (direct transfer via QDRO rather than withdrawing the money and re-depositing it) and leave it there.
To be honest, I would be tempted to feel that its not worth it. When all is said and done, he might end up spending almost as much as the 3500.00, in order to get it...particularly when you take taxes into consideration.

He would also have to be sure that she didn't liquidate the darned thing already.

OP, how did you find out about this 401k?
 

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