Does 401k count as compensation in a Divorce Case? How is 401k decided?

The court determines the assets of the marital estate by looking at all the assets the parties accrued during the marriage regardless of whose name may be on the title.  If you live in a community property state, the assets of the estate are split 50-50.  In a state that divides marital assets by equitable division, the court divides assets by what is fair which may or may not be equal.

If the 401K was built during the course of your marriage then it is a marital or legal asset for the purposes of divorce.  The question as to whether the 401k can count, as spousal support is not so clear.  The court will look at your age, your ability, or inability to work, the standard of living you and your wife enjoyed during the marriage, other marital property available, and any other income to which you may be entitled to determine how much spousal support you may or not be awarded.  This information will also determine whether spousal support if awarded will be rehabilitative (given to you only until you can become self supporting) or permanent (until you die or remarry whichever occurs first).

A 401K is usually not distributed until a person is of retirement age.  The court will divide it using a Qualified Domestic Relations Order.  (QuadRO)  The terms of the plan may not allow your wife to give the entire plan to you.  If the 401 K is meant to be your entire means of support and you are not at the right age to begin receiving disbursements, any support you are supposed to receive from it would be delayed.

You should consult an experienced family law practitioner to get information and about your legal rights and the law is in your jurisdiction.  He or she can advise you regarding your rights to spousal support and property division.