Jacksmom

I guess only the rich and famous get to change their divorce settlements?

This divorce was finalized last June 2018 and 401k disbursed in August 2018. It’s a done deal. They want to renegotiate and amend the 401k division.

They are buried to their eyeballs in debt due to paying for a 26 week gestation premature baby. They lived off the CC when wife (major bread winner) was hospitalized for nearly 4 months. Those same CC paid medical bills for Donor & Invitro services. They have crawled out of this mess, did NOT file BK but paid. Have no Collections or Charge Offs. Marriage did not survive the struggle. They are down to needing about another $90,000 to clear everything and taxes. Attorney who screwed up royally states they can’t renegotiate the 401K settlement and I think that’s BS. Says the judge would not allow it??? Why? People renegotiate Divorce settlements all the time. I doubt the Judge would care unless this is a IRS thing. They should have asked for a Hardship withdrawal years ago but as the child is now 8 that’s a lesson for another day. BTW both parties are wanting to do this and feel they just want to clear the field and try to work on their family. Can they file an amended QDRO based on this renegotiation and pull additional funds? I’m assuming they would need to amend the property settlement in court first. I read elsewhere on this forum that if the revised settlement listed ALL the correct info they may be able to use the Divorce Decree (and this amended settlement) and have it recognized as a QDRO. Any advice?

State of Oregon, parties are now dealing with the reality that they did not withdraw enough from 401K plan to pay off all bills and also pay IRS. Husband now wants to renegotiate the pension settlement and wife just wants the bills paid off. Can they renegotiate the 401k settlement and file an amended or new QDRO? Is it allowed to go back ? They had done a 50/50 split before but failed to account for the tax consequences of not rolling over into another retirement plan. Plus the bills turned out to be more that they thought after paying lawyers :(