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vested and non vested 401k issues in divorce

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S

spooney

Guest
What is the name of your state? PA
I am in the process of a divorce. the issue that is holding everything back is my 401K account. The day my wife left me I had a vested amount of $13,000 in my account. There was a total of $26,000, but I wasn't totally vested because I hadn't been employed at least 5 years with my current employer.

Is my wife entitled to the $13,000 or the $26,000? I'm finding this is a gray area. I need some help on this one.
 


J

Jeffrey2003

Guest
401K

I'm no exepert, but if nothing else my response will move back to the top where the more knowledgable can chime in.

Couple of thoughts. Obviously the 401K is negotiable. I beleive it doesn't matter whether its vested or not (same with pensions). But you can't split its "unvested value". If you were to leave your job (willingly or not) the unvested portion becomes worthless. She can't have 50% of it now, but she does have a right to it in the future. If you can, try to retain the entire 401K (especially if its a good one), and give up something else. I especially would suggest that if your 401K is tied up in stocks or mutual funds as its worth less now than it will when the market recovers.

Talk this through with your lawyer.
 

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