Just two weeks’ prior to our separation (in july 2012), my husband took out a loan against his 401k (50%, which was about $15K) and put it in a new bank account in his name only. I happened to find out about it, and he said it was none of my business (!). We are working on a separation agreement now, and he does agree to use the original, higher amount ($30K) to split 50/50 between us, which means on paper at least, I will get $15K for myself. But my question is, since he took out the loan while we are still married, IF he defaults on his loan repayments, can I be held responsible for the debt?!
Thanks in advance.
Unless your name is on the loan, you cannot be held liable. Make sure your agreement states that he is solely liable and will indemnify you.
If you want to draft the separation agreement yourself then I am sure you will find Rosen Online a useful resource. We have sample agreements available, and you have access to an attorney to answer your questions.
You can find more information here:
Please let us know if you have any further questions.
Also, we have a webinar on DIY legal representation coming up Thursday afternoon. You can register here: