In a divorce is my spouse entitle to the value of stock I bought are 1/2 of the stock itself.?

Question

I owned a 401-k plan before I got married for ten years and had about 82,000 in value got married in 6/30/95 continued in the stock plan untill I retired in 3/30/2003 the value was 132,000 but that changes ever day is she entitled to the value are only 1/2 of the shares that were bought during the marriage. we were seperated in 7/7/05

Answer 1

She's only entitled to the gain during the marriage, so half of (value now - 82K). It wouldn't be fair for her to take half of what you started with.

Answer 2

You are getting divorced, you should have an attorney, ask your attorney - that is why you are paying your attorney. And to respond to the jokers in this post - Depending on your state, a wife is entitled to any gains in the 401(k) which occured during the marriage JUST LIKE the husband is entitled to any gains in his wife's 401(k) during the marriage. Your state's laws set forth exactly how the 401(k) should be divided, the date used to set the value of the 401(k) (date of separation versus the date the divorce was filed....) and how the money is taken into account considering the specifics of the marital pot.

Good Luck and talk to your attorney. If you don't have an attorney, you should consider retaining an attorney. This is perhaps the biggest financial decision that you will ever make.

Answer 3

The answer varies by state and by the type of Qualified Domestic Relations Order your plan will accept. The first step is finding out what your 401k plan can and will do: some don't have the records to figure out specific values at specific dates; some can just be told a percentage of the assets and set up a new account for your wife.

The next step is to figure out what the value of her share would have been on the date the divorce was filed. Her share is the filing date value of one half of one year's contribution. It's about one twenty-second (1/22) of the total value.

Your wife can't even take that money until she's 55 1/2 or older. For such a small value, I usually counsel clients to buy the other side out. Just give her money equaling her share. She gets money now and you don't have to pay for an expensive QDRO.

Consult a lawyer in your state for more detailed advice. Good luck.

Answer 4

This is a question of "Marital Property". Look in your state's statutes to find the answer.

In some cases you would be entitled to label your premarital earnings ($82,000) as non-marital property (for which your wife would have no rights to). Whatever was contributed and earned during the marriage (the difference between the current value minus the $82,000) would be split between you.

Also, you say you are retired; have you been drawing from this account during the marriage?

You really need to ask an attorney (sooner, rather than later) what your rights are.

Answer 5

Your 401K is YOUR 401k. YOU put that money away from YOUR paycheck. You should be able to talk to your lawyer and have the 401k totally or partially removed from the settlement all together.

If nothing else, you can at least claim the 82,000 it was valued at BEFORE marriage (and possibly add value for inflation to it) as your own. And then split the remainder of the 50,000 to soften the blow and keep the stocks still making money. Talk to your lawyer. If he's snazzy enough, he can make it work to your advantage

Answer 6

The answer depends on your state laws and cases, which probably include the length of the marriage and her contribution to the marriage (not only financially, but socially and and housekeeping). I would guess that 10 years of marriage would be enough to entitle her to half of the increase in value from the date of marriage to the date of separation, but you should ask your divorce lawyer. If you don't have one, ask your foolish client - you!

Answer 7

MY Friend, she is not entitled to squat. I would spend it all on a damn good attourney just to keep the wench from having it. What in the world were lawmakers thinking when they punished the Man for getting married and reward the women for getting divorced?

Answer 8

I would say no she isn't since it was never in her name and it never contributed to her well being while you were married, but you had beter get a good Lawyer because these Judges feel that women in general , deserve everything.

Answer 9

anything you bought before the
marriage he/she is not entitled to.
1/2 of the shares bought during
the marriage he/she is entitled to.

Answer 10

I think your divorce attorney would be better qualified to answer this question.