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ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 16154
Experience:  Licensed Texas General Practice Attorney
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I am getting a divorce. My husband has taken a $7000 loan out

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I am getting a divorce. My husband has taken a $7000 loan out on his 401K without me permission. I only want the money returned to the account, but I am concerned about reporting the incident, because there may be laws broken, and he may get into trouble.

What are the criminal laws and penalties for his action?

ScottyMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

ScottyMacEsq :

There almost certainly was not any crime committed. Some 401k plans require spousal consent on a loan, but the failure to obtain said consent would be a contractual issue. The only crime that could have been committed is if spousal consent was required and he forged your name (as that would be forgery). But assuming that he didn't do that, then the loan from the 401k was legal to do, even without your permission. Again, any permission required would be by the 401k plan, not the law.

ScottyMacEsq :

Now it's possible that he violated a court order in not getting your permission and taking adverse actions against marital property .

ScottyMacEsq :

(that is, if he took out this loan after you filed for divorce, and did not disclose it, etc...)

ScottyMacEsq :

This would require that there actually be a court order in place that says that neither of you can do this. And in that instance, failure to abide by the terms of a court order would be "contempt", which is not a crime, but rather a penalty imposed by a court for violating a court order. It doesn't go on a criminal record (although in extreme situations it could put the violator in jail).

ScottyMacEsq :

So in short, to answer your question, unless he forged your name to get this loan, I don't see how any criminal laws could have been broken.

ScottyMacEsq :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate this answer either a 3, 4, or 5 (good or better). Please note that I do not get any credit for this answer unless and until you rate it that way. Thank you, XXXXX XXXXX good luck to you!

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