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Dividing 401k and pensions

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wantinganend

Junior Member
What is the name of your state (only U.S. law)? IL
What are the tax consequences of being forced to liquidate and split 401k and pensions? Also, what if after the final settlement I remembered my ex failed to provide information relating to a pension he had while we were married?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? IL
What are the tax consequences of being forced to liquidate and split 401k and pensions? Also, what if after the final settlement I remembered my ex failed to provide information relating to a pension he had while we were married?
In most cases it is not necessary to liquidate a 401k in order to divide it. Normally what you do is submit a QDRO to the plan administrator and the account is split into two separate accounts. Then if one of the parties wants to liquidate their share, the tax burden is on them.

Pension plans vary in how they can be handled. Speak to the plan administrator regarding what would happen if the pension had to be divided due to a divorce.
 

Ronin

Member
Also, what if after the final settlement I remembered my ex failed to provide information relating to a pension he had while we were married?
If you missed something that should have been included but was not, and final judgment has already been rendered, then it is almost surely too late to do anything about it.
 

mistoffolees

Senior Member
If you missed something that should have been included but was not, and final judgment has already been rendered, then it is almost surely too late to do anything about it.
Maybe.

If ex was ordered to provide information and failed to do so, there MAY be the possibility of reopening the property settlement just wrt that one item.

If she knew about it, that lessens (or even eliminates) the chance of reopening it, but it's not clear that she knew about it before the divorce. It's not clear what "i remembered after the divorce" means in that context.
 

wantinganend

Junior Member
Pension settlement purposedly omitted

There is not a doubt in my mind that my ex purposedly ommited the pension he knew about during our divorce settlement. I really didnt think about it at the time because I wasnt after the 401 k or pensions but HIS lawyer was. My lawyer stressed that I should go after his because his was worth more than mine. The judge ordered our pension and 401 k will be divided in the settlement. I talked to my ex after this, and "thought" we had an agreement to leave each others alone only to receive a letter from his lawyer that he did in deed intend to come after mine despite our conversation. This not only left me perplexed with what was happening, but reminded me that he gained a pension from an employer during the first ten years of our marriage (we were married for 25 years), that he obviously thought I would forget about. I am not beyond taking care of myself, and would have been more than willing to let him have what he feels is his, but I will not lay down and let this man walk all over me once again. I will give him half of what he thinks he deserves, but I will also take half of what I deserve when I accepted the role of being a mother and care taker for our children. I truly have had enough of this guy thinking he is God, and can continue to have control over me. I have no problem of giving him half of what was mine so long as I get what is half of his due to me. Divorce is truly ugly, but I am quickly finding out just how ugly my marriage was to him. Honestly, the emotional and ultimate physical abuse this man has put me thru cannot compare to the ends justifying the means. I honestly tried not to be "dirty" in this divorce case, but I am quickly finding out that I must fight back even if I must stoop to his level. thank you for all your help/ I know I am not the only one in this position. Anyone that can offer guidance via experience..I am more than grateful for your reply. I have an appointment with a lawyer to help me bring an end to this god-forsaken madness, but in the meantime I will also be preparing to make my ex own up to his deceitfulness and any guidance you have for me will truly be appreciated. Thank you in advance for your time and help. Hopefully when this is all over I will be able to give back to those of you who walk in the shoes I have been forced to walk in at this time.
 

mistoffolees

Senior Member
You knew about the pension and didn't bring it up during the divorce proceedings, so it's too late.

As I said earlier, if you didn't know about it and only discovered it after the divorce was final, there's a chance that it could be reopened. But you knew about it and didn't address it. Blaming it on your lawyer or his lawyer doesn't cut it.

You're out of luck.
 

nextwife

Senior Member
Was this referenced pension entirely earned during the marriage, or he had it during the marriage?
 
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LdiJ

Senior Member
You knew about the pension and didn't bring it up during the divorce proceedings, so it's too late.

As I said earlier, if you didn't know about it and only discovered it after the divorce was final, there's a chance that it could be reopened. But you knew about it and didn't address it. Blaming it on your lawyer or his lawyer doesn't cut it.

You're out of luck.
I am not sure that I agree. It depends on how the orders were worded. If it stated that retirement funds would be divided, without be specific as to each item, then the pension he hoped that she would forget about is still subject to division.
 

wantinganend

Junior Member
dividing 401k and pensions

I wish I could post my settlement papers, and you would see just how vague this judge was when dictating the settlement. I dont believe each pension or 401k are mentioned separately. but I will re-read to make sure. However, search and discoveries were implemented. My ex earned the pension during the first 10 years of our marriage. I actually forgot about the pension during the trial, but remembered it after the settlement was finalized. Like I previously stated, my ex and I discussed leaving each others pensions and 401k alone, but it was only a verbal agreement nothing in writing. Am I right to assume the judgement stated the division, so it must be done regardless?
 

nextwife

Senior Member
Am I right to assume the judgement stated the division, so it must be done regardless?
No, you are not right.

Parties can agree to give up/retain various DIFFERENT assets in exchange for other assets.

Example: maybe I agree you may have the newer car if I keep Employer X's 401k intact.

Maybe I agree you can have the furniture if I keep the pension. Maybe I agree you can have the house, because I keep the pension

Parties can agree of dividing assets in a way that is NOT 50% of everything to each. Additionally, anything accrued PREMARITALLY, gifted to the party or inherited, that is not comingled is not normally subject to division.
 

wantinganend

Junior Member
401 K and pension division

Your information would have been quite useful, but my ex got to take everything he wanted when he moved out including things that the judge granted me in court. My ex has not been made to do anything that the judge granted in the settlement. He has even stooped so low as to take some of my personal property the judge had awarded me captive (hiding it at another unknown location) until he saw fit to give it to me. I have yet to receive everything awarded me by the judge, but have more less chalked it up to a loss. My ex says one thing, but does what ever fits his needs depending on if he is Dr Jekyl or Mr. Hyde in any given second. He is impossible to negotiate with, and has yet to follow thru with anything we talked about. I already know (as much as I dont want to go down that path again)...we will ultimately be back in court. Not a place that has proven to be a positive experience for me.
 

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