Question by  Wendy47 (140)

Who is responsible for 401-k loans during a divorce?

My husband and I took out a 401-k loan, who should have to pay it.


Answer by  LadyLawyer (325)

It is a joint debt that the court will divide. Theoretically, all joint debts and assets should be divided on a 50-50 basis. Whoever pays for the loan during the pendency of the divorce should get credit. Please note that this needs to be in court papers.


Answer by  tamarawilhite (17883)

A 401-K loan is typically owed by the individual who owns the 401-K. However, in community property states, all debt accumulated in the marriage is legally owed by both partners.


Answer by  maber (1427)

Since you both took out the loan, you will each have to pay half of the balance of the loan.

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