Washington, DC asked in Divorce and Family Law for New York

Q: I live in NY state, and am in the process of getting divorced, is a loan from my 401K in my name that was deposited...

in a joint account the responsibility of both spouses? What I am asking is my spouse that I am divorcing also responsible for the remaining balance, maybe the original balance since all payments of the loan to date have been taken out of my paycheck. The loan was used by both parties for home remodeling and vacations by the family. In short, the family benefited from the loan. Married for 3 years, no common children and the payment of the 401k loan has been taken out of my paycheck since proceeds were received.

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3 Lawyer Answers
John Anthony Pappalardo
John Anthony Pappalardo
Answered
  • White Plains, NY
  • Licensed in New York

A: Sounds like it is a marital debt

Tim Akpinar agrees with this answer

1 user found this answer helpful

Lawrence Allen Weinreich
Lawrence Allen Weinreich
Answered
  • Garden City, NY
  • Licensed in New York

A: Since the loan was used for marital purposes, the loan is a marital debt to be shared by both parties.

Michael Francis Barrett
Michael Francis Barrett
Answered
  • Buffalo, NY
  • Licensed in New York

A: If the 401(k) is a marital asset to be divided, the loan balance could be taken into account when dividing the 401(k) (so as to reduce your spouse's share of the 401(k)).

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