1. Loan Balances
The Body & Brain Yoga and Health Centers, Inc.. 401(k) Plan and Trust may allow participants to take out loans from their account. If there’s a loan balance at the time of divorce, it can significantly affect how much is available for division. Courts and attorneys must decide:
- Is the loan subject to division (i.e., does it reduce the account balance before the split)?
- Will it be treated as the participant’s sole responsibility?
This issue must be addressed clearly in the QDRO, or the account division may result in an unintentional overpayment or underpayment.

