cashing out a 401k before a divorce

You can but it may end up pretty expensive. You will probably face steep tax penalties. Also, you may end up splitting the original value of the pension - even if it does not exist anymore.

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If you do so, you may want to secure your spouse's agreement in writing, particularly if any of the money is going to be used to pay marital debts.

If you are under 59 1/2 years old you will be subject to a 10 percent penalty, and will have to pay income tax on the money you take out of the 401K. Check with your family lawyer for the family law implications.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.