My husband and I have divorced and final court date was 2 weeks ago. As part of the settlement besides child support, I am receiving 1/2 of his 401k.
We are filing joint bankruptcy as there was a house that was foreclosed upon a year ago (he lives in the house , I live with our 2 children) as well as small mutual credit card debt. My question is, What happens to the 401k settlement in this process? In order to avoid the money being used in this process, is it better to roll over the 401k into my name and wait until after the bankruptcy to pay legal fees etc... out of the 401k or is it best to pull the money out, pay the penalty and with the remaining pay off legal fees etc... and then put the money into an account?
Help!