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Asked 1/28/2011

Retirement plan (401K) distribution during divorce

Hi,

I have filed for divorce in California. My husband has 401K plan which he has had before we got married. During our marriage, he made a huge withdrawal from the plan without my knowledge or consent. After the divorce was filed, he made another big withdrawal so the 401k plan is basically left with nothing. What can I do in such situation? Can I show claim on the funds he withdrew? Please advise.

 
 
 
 
 
Answers

Answer 1/9 - Submitted 1/28/2011

No if he had this before you got married it was basically his it's what he came into the relationship i could see it if he started it while you were together then you could probably have gotten some of it but sense he came into it before you got together that makes it his and his alone

 
 

Answer 2/9 - Submitted 1/28/2011

The way a 401K is distributed during a divorce is that you are only entitled to what he gained while you were married. You are not entitled to what he gained before you got married or after your divorce.

He knew what was going to happen and that's why he took all the money out. If you've got a good attorney, then the attorney may be able to get you some of the money he took out behind your back. I suggest you talk to your attorney. This is a low blow and he thinks he's going to get away with it, but your attorney will get you what you deserve.

I wish you the best and thank you for visiting Webanswers.com.

 
 

Answer 3/9 - Submitted 1/29/2011

If the 401k existed before marriage, it is unlikely that any part is community unless it had added contributions post-marriage

Divorces don't consider one asset at a time to divide just that asset. You will complete your disclosure documents known as the Preliminary Declaration of Disclosure including the Schedule of Assets and Debts. A final declaration will be filed or waived if you settle.

You will consider all your assets and debts, arrive at an amount, then you will negotiate how each party will end up with their share of the amount. Only community assets will be considered fully. Any accumulation before marriage and after separation won't be considered fully, if at all.

Be careful hiring a lawyer, then thinking that you will be better off. Consider the cost. If you pay more than is available to gain, then you should negotiate with your husband on your own. Receiving something is worth more than ending up owing an attorney.

 
 

Answer 4/9 - Submitted 1/29/2011

How long you`ve been married? Let say 5 years, the lawyer has the legal power to check all his financial holdings, whatever he own for the last 5 years including retirement accounts which maybe half of it you are entitled to. Seek legal advice or hire a lawyer.

 
 

Answer 5/9 - Submitted 1/29/2011

Hi all,

Thanks for the replies. To clarify few things, there were contributions to 401k even during our marriage. I know I have a right on half of it but he withdrew a lumpsum amount while we were married without my knowledge or consent. And made another big withdrawal just before filing for divorce. What can i do in such a situation? Do I have a right on the funds withdrawn?

 
 

Answer 6/9 - Submitted 1/29/2011

There are several options to recover what is rightfully yours, and if you have a lawyer, he should already know what to do. You dont have to worry about the retirement accounts, the IRS have all the record because just like you, they have vested interest in it too.You really need a lawyer because most or all options to recover your money can`t be done by you, examples, bank account seizure, or any other tools necessary to enforce the law.

 
 

Answer 7/9 - Submitted 1/30/2011

Technically, you do have an interest in the 401K, even the monies he withdrew. Your attorney should subpoena all of his accounts to verify the amounts he withdrew. He will then have to give you your portion of the funds. He has actually broken the law in this matter.

In the final outcome, when the judge awares you your portion, I suggest you get a money order immediately and not a check.

Good luck.

 
 

Answer 8/9 - Submitted 1/31/2011

Thank you so much, domingo506. Your answer was very helpful.

 
 

Answer 9/9 - Submitted 1/31/2011

Thanks MsDottie for clarifying my doubts. I'd do the needful. Thanks once again :)

 
 
 
 
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