401K and divorce question.?

Question

I have a cousin who is in the middle of a long, drawn-out, nasty divorce. over 2 years ago it was decided that the 401K would be split (roughly $9000 + interest) per party. nothing happened, nothing happened until BAM! recently he gets a statement saying that $17000 is being taken from his 401K for the divorce. Im aware this is screwy but what legal action does my cousin have to go back after his money?

Answer 1

money can only be taken via a QDRO which is a court order signed off on by all parties. If there is no QDRO then he has legal recourse against the plan sponsors (they would have to go after the ex). Likely it was part of the negotiated settlement but he didn't fully understand what he was agreeing to. He needs to talk to his attorney.

Answer 2

in case you began this 401K plan in case you have been married this is seen ingredient of the "marital" components and he or she is entitled to a million/2. Which certainly one among you has taken funds out of this is beside the element. The regulation recognizes a private own loan (borrowing from the 401K) from one greater smart a million/2 as a private own loan by potential of way of the two spouses and so the two are the two in charge.

Answer 3

he should have had to file QDRO paperwork with the administrator of the 401K before any money could have been taken out; and yes she is allowed to have 1/2 of it or more if that is what they decided in the divorce; he had better go talk to his lawyer, quickly....sounds like the other party filed the paperwork.....

Answer 4

He needs to figure out, with the help of his lawyer and a forensic accountant, by WHOM is this money taken out, and make sure to keep all records of financial statements. Someone somewhere had to authorize this, and if it was not him, and his ex did this, he can charge her with theft.

Answer 5

She should ask her attorney for advice. That's what he/she is getting paid to do.