Separation agreement 401 K split


#1

Hi-

I would like to know what this line in my settlement agreement indicates: “Wife will receive, a total of xxxx from Husbands 401K , minus any passive losses from the valuation date of Dec 4 2018 to the date the funds are distributed to wife.”

Does this mean they are subtracting the accumulated losses from the value at the distribution date? Or does this mean they take the value at the distribution date and if it is lower then the december 4th date I will receive the lower value?


#2

This means that you will receive the stated amount of funds minus any stock market losses, if any, between 12/4/18 until the date the funds are distributed to you in you own account.

So if the funds in the account have lost money due to the stock market, then you would receive the stated amount of funds less the stock market losses on those funds. This is typical language to be included when dividing retirement assets.


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.


#3

Does this mean you take the value of the money allocated at the disbursement date minus the loss on specific date (if applicable).

Or is it the accumulation of losses that happened in the period (one day it goes up, next day down, next day up, next day down) and subtract a total of those losses from the distribution date value?


#4

It is the stated amount minus any losses as of the date of distribution. The financial institution holding the 401(k) will calculate this.


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.