Effect of 401(k) Loans on Equitable Division in Georgia Divorce

Effect of 401(k) Loans on Equitable Division in Georgia Divorce

Georgia can be an equitable circulation or equitable unit state, not a residential area home state.

Which means that upon breakup a couple’s property that is marital split equitable or fairly involving the events. Marital home doesn’t just add marital assets, like the marital household, automobiles and bank records, but marital home also contains marital debts, like credit debt and mortgage loans. With that said, determining just how to divide a free account that could be simultaneously regarded as both a secured item and a debt might be very difficult.

Them, many parties are tempted to simply ignore the loan and proceed to divide or retain the retirement account as if there was no outstanding debt associated with it when it comes to dividing 401(k) or other qualified retirement accounts that have outstanding loans against. This is certainly a blunder. Failing continually to comprehend the effect of 401(k) loans on equitable unit may end in both events, specially the employee-spouse, putting up with unintended monetaray hardship due to the error. Continue reading “Effect of 401(k) Loans on Equitable Division in Georgia Divorce”