Loan Balances
Many 401(k) plans allow participants to take loans against their retirement balance. In a divorce, your QDRO must clarify:
- Whether loans are included in the value as a marital asset
- Who is responsible for repaying the loan moving forward
If a participant has an outstanding loan, the current loan balance must be disclosed and factored into the division. Some QDROs exclude loans; others assign the debt to the participant alone. The choice has financial consequences, so be sure it’s addressed clearly.

