Spousal consent on loan - going through a divorce.

[Guest Achilles]

I have a client who has a participant that wants to take a loan. The participant and her husband are "going through a divorce".

The plan requires spousal consent for loans, but can that be waived if they are "legally" separated, and have documentation showing that they have started the process to become divorced?

If so, would they just have to supply this documentation?

Thanks in advance.

[QDROphile]

Legal separation is a formal status in most jurisdictions and that status is documented by court order. "Going through divorce" is not legal separation, and is not a basis for avoiding spouse consent, if otherwise required. In fact, it is all the more reason to require spouse consent.