Legal Question in Family Law in Texas
In mediation I found out my soon to be ex took out a 22k loan from 401k leaving 20k in 401k. They make us split that 20k. Then I found out he gave 15k to his lawyer in a trust from that 22k loan. Can he do that?
Asked on 7/13/15, 11:34 am
1 Answer from Attorneys
It's fairly common for people to take 401k loans to pay for their attorney or other divorce-related expenses. He is probably permitted to take the loan although there may be temporary orders or a standing order that prohibits it. Impossible to say without knowing more about your case.
The bigger issue, perhaps, is how the 401k division will work with the outstanding loan. There are ways to calculate the division and order payment as though the loan was not taken.
Answered on 7/13/15, 12:09 pm