Is Wife Entitled To 401K Funds As Spousal Support Or Alimony In Divorce Settlement?

How does the 401k and divorce work, especially if it is a divorce in New York? In the state of New York, assets and debts acquired during your marriage are called “marital property” and will be divided equitably when you divorce.  Any assets that you had before you married may be considered separate property.  Any income produced by a separate investment may also be considered separate as long as it hasn’t been commingled with marital property.

Alimony can be ordered by the court and they will consider such factors as, the length of the marriage, conduct of the parties during the marriage, age and health of the parties, occupations of the parties and their income, assets and liabilities or any special needs of the parties.

Retirement funds are often the largest assets and the biggest sources of contention in marital property division.  The court settling your divorce will issue a statement called Qualified Domestic Relations Order (QDRO) that will clearly state how much of your 401k will be given out, when it will be paid and how the division of retirement assets will occur.  It’s always a good idea to ask your 401k administrator if there is a model QDRO form that can be used in your case.