Re: Divorce and my 401k

Blondie wrote:

> Now that I am getting a divorce how much can my wife get of my 401k? 

That's going to depend on the relevant state law involved. 
The mechanism to get it out of the plan is a Qualified 
Domestic Relations Order, but federal law clearly grants the 
authority to the state courts to issue such an order and the 
plan is obligated to comply with a valid QDRO.

> Also is there a way that I can keep her from getting what I have worked for 25 years for? I am within 5 years of retirement and I need all that I can get! 

It's not going to be any different than any other asset. 
The only real difference is that it's likely harder to 
*fraudulently* undervalue that asset if the spouse has any 
idea it exists, since the plan trustee is the actual owner 
of the assets in question (the assets underlying the plan 
balance).

The real way to do this--get competent professional help 
from a good local family law attorney.  But I would offer 
one piece of advice--if you decide to "do battle" in full, 
you can easily create a situation where neither you nor your 
spouse will get the plan--rather it will go into litigation 
expense.

If you ever hear yourself saying to your attorney "it's the 
principal of the thing!" when justifying continuing to 
battle, save both of you a lot of trouble and just agree to 
each give half of all you have to a third party.  Because, 
otherwise, the expense of battling in court will consume all 
that's there.  And, frankly, there's *always* one more 
battle you could fight in these cases if you look hard enough.

Divorce is an emotional issue--but you need to retain enough 
common sense to continue to make an appropriate cost/benefit 
analysis.

--
Ed Zollars, CPA
Phoenix, Arizona