We're doing 50/50 split on both his ira and 401k . Because splitting out my portion of 401k is so involved, I'm get that amount out of ira to + my 50% of the ira...
Here's the question... he's taken a loan out of the 401k and that loan shows up in the balance... I'll still 50% of the total and his 50% will include his loan... is that correct ?
My first question on this board... not a very exciting one, is it... will try to bring a little excitement next time... just need to get over a few hurdles
Thanks
K

If the debt on the 401(k) is community a debt (called a "marital" debt in some places) then you both owe it together (in California a community debt would be one incurred between the date of marriage and the date of separation). In equally dividing the IRA and 401(k) accounts you would thus each share equally in the debt on the 401(k). If for simplicity and to avoid having to prepare a QDRO to divide the 401(k) you are taking your share of the 401(k) by simply adding the value of that share to your share of the IRA (which makes total sense), you would still be responsible for half the debt on the 401(k). So, agree that he be solely responsible for the debt on the 401(k), deduct half of that debt from your one-half share of the balance now in the 401(k) and add that to your share of the IRA. That sum should be rolled over into an IRA in your name. You don't need a QDRO to divide an IRA so that would save you some money. All you need to do is agree on the numbers and contact the IRA plan administrator to see what documents they need to do the rollover. In the disso assign the debt on the 401(k) to him and spell out the method of division and that should take care of it.

Thanks Cad... the debt was incurred after separation . But I appreciate you explaining the process.. u make it sound rather simple... could it possibly be ?

Thanks Cad ... the debt was incurred after separation . But I appreciate you explaining the process..u make it sound rather simple ...could it possibly be ?

Well, it's not much more complicated than that. If the debt is post-separation then in California that would be his separate debt and there wouldn't be the offsetting that I mentioned. You would be entitled to half the balance before the loan was taken out and you could have that sum added to your one-half share of the IRA and roll over the total to your own IRA.