Legal Question in Family Law in New Jersey
Can 401k participant perform a withdrawal after a divorce but before a QDRO distribution?
My divorce is finalized and it stipulates that my spouse in entitled to 50% of the marital 401K portion (I am the participant) up to the point of complaint and that any gains and loses be taken into consideration up to the point of QDRO distribution.
We haven't started the QDRO yet. What would be the consequences of a participant taking a withdrawal before the QDRO calculations/distributions are performed? Is the QDRO able to still determine the "gains and loses" if a withdrawal by the participant is performed after the divorce but before the time of distribution?
1 Answer from Attorneys
I assume you had an attorney for the divorce. You should discuss this with him/her before you do anything that can lead to an expensive court process.