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#140077 - 09/01/06 07:53 AM 401k loans
firebug Offline
recently joined

Registered: 09/01/06
Posts: 4
Loc: Baltimore, MD
Do 401K loans after a divorce has been filed go toward marital assets? No settlement agreed to at this time with STBX?

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#140078 - 09/01/06 02:52 PM Re: 401k loans [Re: firebug]
Lucy44 Offline
old hand

Registered: 07/11/05
Posts: 874
Loc: Rochester, MN
What exactly are you asking? Please be more specific.
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#140079 - 09/01/06 09:11 PM Re: 401k loans [Re: Lucy44]
firebug Offline
recently joined

Registered: 09/01/06
Posts: 4
Loc: Baltimore, MD
My STBX has $100,000.00 in her 401K which is marital property. I also have a 401K plan of about $160,000.00. the difference of $60,000.00 and halving this up, I would owe her $30,000.00 , but STBX recently took out $25,000.00 loan from her plan lowering the amount in plan to $75000.00 from $100,000.00 available. I,m saying half that loan amount is marital property. Now her lawyer is saying my marital share is $42,500.00 instead of $30,00.00 because her total amount in her plan is less now ($160,000.00 - $75,000.00 is $85,000.00)

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#140080 - 09/01/06 09:42 PM Re: 401k loans [Re: firebug]
Avaya Offline
Carpal \'Tunnel

Registered: 02/09/06
Posts: 9850
Loc: Arkansas
I would think that the accounts' value at the date of separation should be the marital assets. Heck, she could have taken all of it out and then claimed you owe her $80,000, you know? Or you could have taken all of yours out and claimed she owed you $50,000.
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#140081 - 09/02/06 12:21 AM Re: 401k loans [Re: Avaya]
firebug Offline
recently joined

Registered: 09/01/06
Posts: 4
Loc: Baltimore, MD
I believe there is a $50,000.00 limit on a loan from most 401K's. That's what I'm thinking of doing to lower my total, if in fact that borrowing doesn't go toward marital assets.

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#140082 - 09/06/06 07:52 PM Re: 401k loans [Re: firebug]
LinusluvsSally Offline
addict

Registered: 08/23/06
Posts: 441
Loc: South Florida
Firebug, I agree with you.

The loan SHOULD count as part of the total value. The only caveat would be if in fact you both jointly used the proceeds of the loan as a couple.

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