Legal Question in Family Law in Kentucky

My divorce was final as of July 2008 and my ex-wife was awarded 50% of my 401k. I lost my job and requested a lump sum payment on my 401k in July 2009. She had not done the proper paperwork to get her share and now is demanding that I give her the full 50% without her paying any penalties or taxes because I recieved the money before the QDRO was processed. My question is: Does she have any legal right to this or should it be taken to court to correct. I have offered her the amount after taxes but she is refusing to agree to it.


Asked on 8/17/09, 2:24 pm

1 Answer from Attorneys
Bryan Gowin Bryan Gowin Attorney at Law

I would tell her that she can accept your "cash" offer without any tax implications and as settlement in full or you can roll her 1/2 over into a qualified plan without any tax consequences to you (you should consult a tax attorney or cpa on this as i believe you have a 60 or 90 day grace period to place the withdrawn funds back into a qualified account without suffering any tax consequences) and then she will have to pay taxes on that amount should she decide to withdraw it. a court may award her the full amount, however, some tax consequences should be assessed against her portion, but it may not be the same tax rate as you were assessed.

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Answered on 8/22/09, 7:00 pm


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