Took 401k w/out my knowledge - am I liable if he defaults?


#1

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.


#2

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.


#3

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:

http://www.rosen.com/online/

Please let us know if you have any further questions.


#4

Also, we have a webinar on DIY legal representation coming up Thursday afternoon. You can register here: