Dallas, TX asked in Arbitration / Mediation Law and Divorce for Texas

Q: Divorce mediation was ordered by Judge but I can’t afford to pay for my mediation

Judge stated I had money in my 401k and for me to pay for mediation from that account. The rules for loans from 401k don’t allow me to use the funds. What legal repercussions are there for not being able to afford mediation?

1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Arbitration & Mediation Lawyer
  • Frisco, TX
  • Licensed in Texas

A: In almost all situations, an employee can make an early withdrawal from their 401k plan to pay a mediation fee in a pending divorce case. It happens all the time.

Good luck trying to prove your 401k plan will not allow you to make an early withdrawal under such circumstances.

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