Divorce and 401k

[QueHuong]

No juicy background story here...was just having a convo about it and wanted to pose this question to you guys. If you get divorced, is your ex-spouse entitled to any amount of your 401(k), Roth, or other retirement funds?

 

[GasX]

No juicy background story here...was just having a convo about it and wanted to pose this question to you guys. If you get divorced, is your ex-spouse entitled to any amount of your 401(k), Roth, or other retirement funds?

Complicated question, but the short answer in lieu of a pre-nup is HALF

 

[nickbits]

Typically, the amount in a 401k accumulated during a marriage is considered marital property.

 

[highland145]

In S.C assets are split mostly 50/50. So depending asset total, yes.

 

[highland145]

Had a customer whose wife divorced him. She had 25 years making good $$ with an excellent retirement account. He got $110K from her 401k

 

[ichy]

Yes. The more productive spouse always gets screwed.

 

[dullard]

When I got a divorce, the state laws said that unless there were extreme circumstances, the value of everything had to be split 50/50. Meaning that if one person had a larger 401k than the other person, then the person who was shorted needs to get more items/money in another way.

Of course, like everything else, the value of the 401k before marriage gets to be kept 100% by each party.

 

[dullard]

Yes. The more productive spouse always gets screwed.

And the other spouse had the better job, more income, and splits the 401k.

 

[highland145]

Yes. The more productive spouse always gets screwed.

Hence the reason she divorced him. I did mention he was a customer (sig).

 

[thepd7]

Hence the reason she divorced him. I did mention he was a customer (sig).

I don't understand from the sig what your job is. Loan shark? Pawn shop owner?

 

[Pliablemoose]

Typically, it's a bit more complicated than 50/50, it's 50/50 if the assets were accumulated during the marriage, if some existed prior to the marriage, 50% of the principal and the earnings are awarded.

PSA, always always get a pre nup, and if not, get a post nup.

 

[HopJokey]

Typically, it's a bit more complicated than 50/50, it's 50/50 if the assets were accumulated during the marriage, if some existed prior to the marriage, 50% of the principal and the earnings are awarded.

PSA, always always get a pre nup, and if not, get a post nup.

I ain't saying she a gold digger
But she ain't messin' with no broke...

 

[xSauronx]

Typically, it's a bit more complicated than 50/50, it's 50/50 if the assets were accumulated during the marriage, if some existed prior to the marriage, 50% of the principal and the earnings are awarded.

PSA, always always get a pre nup, and if not, get a post nup.

this and that.

another user here got a divorce and told me his wife had the option of a 401k or something and never used it, so he was the only one with a retirement plan when they got divorced, and he ended up taking out a 2nd mortage or something to cover the half of his 401k that she was awarded.

its bullshit. get a prenup. its insane that you can get into a marriage so easily and its such a whore to get out of one, take the precautions.

 

[Blackjack200]

I don't understand from the sig what your job is. Loan shark? Pawn shop owner?

Consumer loans. Search the forums, he did a pretty interesting thread about it.

 

[Modelworks]

The amount you had before the marriage no. The amount added to it during the marriage yes, she gets half.

 

[PokerGuy]

401k is probably just the same as any other asset or account. Anything you might have had in there before you got together remains yours, but anything accumulated after that point is going to get split between the parties like any other asset.

 

[highland145]

Consumer loans. Search the forums, he did a pretty interesting thread about it.

Thanks. Here's what I tracked down.
http://forums.anandtech.com/showthread.php?t=2032712&highlight=finance&page=2

$100.00 to $1000.00 at 35% simple interest. Average length-8 month installment contract. At present, 505 accounts with $330K outstanding. Before the uneducated blast me for my rate, I'll throw out some facts about the industry.

30%+ past due at any given time and has been this way since I have been in it. Makes the mortgage crisis look like a petty cash problem.
10% charge off/loss each and every year. Keep in mind this is my $$ not a large corporation. I tried for some tarp funds but....
Average customer fico score is 500.

I do make good $$ but some times I think penny stocks would be better.

Meaning that the guy was borrowing from me, she had a bunch of $$ in her 401K because of her hard work and she got abused on the $$ end.

 

[thepd7]

Consumer loans. Search the forums, he did a pretty interesting thread about it.

Thanks. Here's what I tracked down.
http://forums.anandtech.com/showthread.php?t=2032712&highlight=finance&page=2

Meaning that the guy was borrowing from me, she had a bunch of $$ in her 401K because of her hard work and she got abused on the $$ end.

Wow that is interesting. Do you call yourself a loan shark? Not trying to be rude just curious.

 

[highland145]

Wow that is interesting. Do you call yourself a loan shark? Not trying to be rude just curious.

Jokingly "legalized loan shark". True sharks get ~$25 per $100 per week or something like 1300% with no pesky laws or regulations to abide by. The legal recourse in S.C. is worthless but I'm ahead of last year, only $10K charge off so far.

Interestingly, other industries have a much greater mark up but no negative stigma. My sis owns a jewelry store and her typical is 200 to 300%. Wal-mart might have $1 in that tee shirt that they sell for $10.

 

[thepd7]

Jokingly "legalized loan shark". True sharks get ~$25 per $100 per week or something like 1300% with no pesky laws or regulations to abide by. The legal recourse in S.C. is worthless but I'm ahead of last year, only $10K charge off so far.

Interestingly, other industries have a much greater mark up but no negative stigma. My sis owns a jewelry store and her typical is 200 to 300%. Wal-mart might have $1 in that tee shirt that they sell for $10.

great point, in my company's quarterly conference call (open to the public so I'm not divulging anything here) we talk about a 86% target margin.

Anyhow, enough thread derailing I'm taking my other questions to PM.

 

[QueHuong]

Is nothing sacred anymore? I'm in my twenties and am currently putting in a lot of my paycheck so I can take advantage of the bear market ("buy low, sell high") and of the time value of money. And to think some day a girl might take half. Need to find a girl who'll marry me for my looks and not my money.

 

[RabidMongoose]

Is nothing sacred anymore? I'm in my twenties and am currently putting in a lot of my paycheck so I can take advantage of the bear market ("buy low, sell high") and of the time value of money. And to think some day a girl might take half. Need to find a girl who'll marry me for my looks and not my money.

It depends on the state. In California, whatever you earned and put into the 401k before marriage will still be yours at the dissolution of the marriage.

 

[Mike Gayner]

Is nothing sacred anymore? I'm in my twenties and am currently putting in a lot of my paycheck so I can take advantage of the bear market ("buy low, sell high") and of the time value of money. And to think some day a girl might take half. Need to find a girl who'll marry me for my looks and not my money.

"Some girl"? Presumably you're not getting married to "some girl".