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paying off marital debt w/ 401k whats the ramifications

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K

klamm

Guest
I am from Illinois going thru a divorce. We have credit cards that are joint which needs to be paid off plus my mom lent us money to make ends meet with our bills. I would like to take out monies from my 401k plan to pay these debts ( I understand about the penalties of earliy withdraw). My wife wants to file for bankruptsy, then she can start from fresh. I recieved custody of our child and would like to buy her share of the equity in the house so my son is not forced to be uprooted. If we get a divorce and file for bankrupt then it will be very difficult to refinance and get the home not to mention what it does to my credit. I have been paying the bills my self for the home, utilities, joint debt, gorceries and medical with out her finacial support. My mom lent us money to maintain the house and also my banker floated me a $3000.00 loan to keep up with the bills . If I withdraw the 401k funds and pay off the joint credit cards. I will not have to file for bankruptsy. She will still need to because of credit cards in her sole name. Two years ago she wanted to withdraw the money and payoff our debt but we didn't at that time now I want to and she has no reason to do so since she will be filing for bankruptsy anyway. What ramifications would there be if I withdraw the 401k and paid off the joint marital debt without her permission (keeping records of who I am paying and when), also do I deposit the 401k funds in my checking account and make payoffs with my personal checks?
I need to do something soon before the divorce goes thru. We are still negotiating. I filed for this divorce 1 year ago last october. My wife is a alcoholic with suicidal intensions and suffers from depression. We our still living together in the same house.
I appreciate your expeditious help.
 
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