401k split Question

pg19792022 · 2024-10-02T10:26:05+00:00

The fiduciary guy that split our accounts cost 2k, plus another 2k in lawyer emails. I mean just when you think it’s over there’s more $$ to pay. Keep this in mind. Oh, and it took almost three months.

Big_Calendar_4170 · 2024-10-01T21:58:00+00:00

Your contributions after date of separation (DOS) are yours, but the gains or losses earned in the last 18 months on the amount at DOS are split equally.

For example, if that 200K growth is all gains from the 300K, and all of the 300K is marital, then she gets 1/2 of that 200K as well.

If you put in 100K before marriage, then she gets the marital portion only (300K - 100K = 200K) + the gains since DOS on her 200K marital portion. In your case looks like there is no losses. For example, if you put in 50K after DOS, she doesn’t get any of that 50K; only 1/2 of the growth on the marital portion, so in this example she would get her marital pre-DOS of 200K + the post-DOS gains earned from that 200K in the last 18 months.

The QDRO will state the balance to use based on your Marital Separation Agreement (MSA) and will add the gains for the last 18 months and award her that amount.

She will get that deposited into an account of her own, and if she withdraws any of it she needs to pay taxes on it unless it was a Roth (funded with post-tax contributions).

pk2at · 2024-10-01T19:05:52+00:00

It depends on the state, but usually date of separation should be mentioned in the petition, that is the date used (if not contested)

Xan-Diesel · 2024-10-01T16:28:37+00:00

I was lucky as my ex-wife was so excited to indulge in her whirlwind romance with her affair partner we had a very easy divorce. We used a country facilitator (no lawyers) and didn't really argue over anything. We took our own credit card debt, own vehicles and she took whatever possessions she wanted. I'd saved in my 401k for roughly 15 years and we were married for just shy of 10 years of that. She agreed to half of 10/15ths and the day she left just happened to be the end of the quarter so there was a nice spreadsheet of the total value for her to peruse. She had a nominal amount of money in her 403b and insisted that value be deducted from what she was entitled to. Just gave that number to the facilitator for the paperwork and there was no problem getting a QDRO for the 401k people.

This_Train340i · 2024-10-01T15:09:58+00:00

Should've cashed out your 401k and stuck her with half the tax bill, but it might not be too late if you need the funds for attorney fees. Get creative!

EconomistVisible2767 · 2024-10-01T14:56:37+00:00

CA here. Everything you accrued before marriage is yours (you'll need statements from around this time). Everything you accrued after date of separation is yours (again, you'll need statements from around this time).

Everything between those dates is community property which is split according to the decree. For my divorce, we agreed on 50/50. But it can be negotiated and often is for buyouts.

QDRO is the formal process that management companies generally require before splitting deferred comp plans. A QDRO opens a new IRA in the spouse's name and transfers X% of the community savings into it. This spares both parties from early withdrawal penalties.

DaemonTargaryen2024 · 2024-10-01T12:26:04+00:00

It depends on what the QDRO states, but it’s usually “as of xyz date, plus or minus earnings”

life-is-short- · 2024-10-01T11:43:53+00:00

On the time of QDRO. At least that how it worked on my side.

Title	401k split Question
Author	Calm_Age_6555
Upvotes	3
Comments	8
Date	October 1, 2024 11:10 AM UTC (1 year ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/1ftlgwo/401k_split_question/
Archive Link	https://theredarchive.com/r/Divorce_Men/401k-split-question.1531777 https://theredarchive.com/post/1531777

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