My ex defaulted by not responding and I filed all the necessary paperwork for the final judgement. 3 days before the divorce was to be final he filed to request to "vacate judgment" saying he was in jail and did not get the chance to be heard. There is now a court date of Nov 26th. What does this mean? Is the divorce on hold? He is saying he is "aware of my 401k". He wants money/property now? Is that legally possible?

Yes and yes. If he was granted a new hearing, they must have believed why he defaulted. If there are assets that have not been divided they could be included.

It looks like the hearing is on his motion to set aside entry of default. That doesn't mean they believe him; only that they will hear what he has to say about it.

If the court does actually set it aside, then it will consider his evidence regarding the other assets.

The bottom line is that courts dont really like to issue default divorces as they can be reopened for any number of reasons. So it is always best to proceed with both parties aware of whats going on and both parties present.