401Ks and protecting assets

Question: Two questions from this Missouri resident:

1. Are 401 K's subject to division as marital property?

2. Can assets be protected if you fear an upcoming divorce by holding assets (stocks, investment property specifically) in trust or something?

Answer: Question 1: Yes. They are divided by a Qualified Domestic Relations Order (QDRO). It is possible for the 401k to be part marital and part separate. If that is case, the separate portion will remain yours and the marital portion will be allocated in the divorce.

Question 2: Not really. If the transfer of the assets occurred in anticipation of the divorce, the transfer could be set aside. Further, if you are found to have secreted assets from your wife, it would probably require to commit perjury. You can be criminally prosecuted for that action. Further, a typical sanction by the court if they find secreted assets is to give the asset to your spouse and pick up a portion of the spouses attorney fees. I do not know of many assets that are worth that risk.

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