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

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

Georgia is an equitable circulation or equitable unit state, perhaps maybe not a residential district home state.

This means upon divorce proceedings a couple’s property that is marital split equitable or fairly between your parties. Marital home doesn’t just consist of marital assets, like the house that is marital cars and bank reports, but marital home also contains marital debts, like personal credit card debt and mortgages. With that said, determining how exactly to divide a merchant account which may be simultaneously regarded as both a secured item and a financial obligation might be very difficult.

In terms of dividing 401(k) or other qualified retirement records that have outstanding loans against them, numerous events are lured to merely disregard the loan and go to divide or wthhold the your retirement account as though there clearly was no outstanding financial obligation related to it. This can be a error. Failing continually to realize the effect of 401(k) loans on equitable unit may bring about both parties, specially the employee-spouse, putting up with unintended financial hardship due to this blunder. Continue reading “Effect of 401(k) Loans on Equitable Division in Georgia Divorce”