If you are in the process of getting a divorce, timing can play an important part in how your retirement assets are divided. An attorney can provide you with assistance in planning division of retirement assets and will work to protect your best interests.
Loans against Plans:
Many times employers let their workers take out loans against contributions they have made to their retirement plans. Like any other secured liability, any loans you do take out lower the total value of your assets. Likewise, it also lowers the total value of the marital estate. Bear in mind that these loans are no different from any others when it comes to timing and valuation in the event of a divorce. Specific questions regarding the valuation of your estate should be directed to an attorney.
There is a saying, "timing is everything," and this is especially true for divorce cases. When you obtained an asset (or incurred a liability) plays a great part in whether or not you have to share it with your soon-to-be-ex-spouse.
For instance, perhaps you bought a car before you got married. That is an asset that may be considered "pre-marital," and therefore not counted as part of your marital estate. Pension plans are considered in the same way. Money you put in before you are married (and at times, after you are separated) is money you may be able to keep if it's determined to be "pre-marital." The same holds true for indebtedness. If you purchased the automobile prior to marriage, and still owe money on it at the time of your divorce, you likely will be fully liable for payment of the debt.