Money matters

Can a spouse take money out of his 401k or if the mortgage is in his name but the house is marital asset can he take out an equity loan on the mortgage? How will this affect the distribution of assets? He did this 2 weeks after he was served.

Assuming you are already separated, then these actions will affect equitable distribution. If the 401(k) funds were marital property, then the value of the loan will be counted against your husband. If he took out a new home equity loan after the date of separation, then that debt will be his separate debt that you would not be responsible for.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

There was equity of about $70,000 on the property. So if he took some of that in the form of an equity loan how will that affect my distribution of the equity in the house. It is a marital asset even though my name is not on mortgage correct? We are separated.

A house is generally a marital asset if it was acquired during the marriage, regardless of whose name is on the deed or mortgage. If he wrongly borrowed against equity in the marital residence, then this amount will be counted against him in equitable distribution.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.