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pre-marital 401k valuation method

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l113357

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

I am divorced and we are trying to settle the division of our 401k pensions. We both worked for the same company and we both started our 401k's before we got married. What is the method to determine the present value of the pre-marital portion of each of our 401k's? Do we use the dollar value on the date we got married (1988) or do we use the number of shares we each had on the date we got married? If we use the number of shares, then it seems like the present value would include the growth of the value of those shares over the years (19 years). It is my understanding that the grwoth during the marriage years is a marital asset.
 


mistoffolees

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

I am divorced and we are trying to settle the division of our 401k pensions. We both worked for the same company and we both started our 401k's before we got married. What is the method to determine the present value of the pre-marital portion of each of our 401k's? Do we use the dollar value on the date we got married (1988) or do we use the number of shares we each had on the date we got married? If we use the number of shares, then it seems like the present value would include the growth of the value of those shares over the years (19 years). It is my understanding that the grwoth during the marriage years is a marital asset.
Use the dollar value at the time of marriage. Any growth is marital.
 

LdiJ

Senior Member
Use the dollar value at the time of marriage. Any growth is marital.
While I do agree with you, when there is a clear cut way to determine growth of the premarital portion (ie via shares) I have seen people successfully argue and retain the growth of their premarital portion.

However, in this case, where they both worked for the same company, the growth per share should be equal, so in the end, it shouldn't make any difference.
 

ShyCat

Senior Member
However, in this case, where they both worked for the same company, the growth per share should be equal, so in the end, it shouldn't make any difference.
Growth per share would only be equal if both invested in the exact same stock/bond mutual funds.
 

LdiJ

Senior Member
Growth per share would only be equal if both invested in the exact same stock/bond mutual funds.
I was looking at it as if the whole 401k fund was invested in the same stock/bond mutual funds. My bad, because it wouldn't necessarily be that way.
 

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