confusedmama Posted September 22, 2010 Share Posted September 22, 2010 I am scheduled to go back to court for an appeal from my ex husband, I have to hire a lawyer to do this. The only money I can think of is what little I have in an out-of -state retirement account that I haven't switched over yet. Good idea? How much will it cost me in penalties? Anybody got any idea? Link to comment
abitbroken Posted September 22, 2010 Share Posted September 22, 2010 No. I wouldn't do it. I would talk to your lawyer and talk about a payment plan until a settlement is reached. Maybe also something can be arranged where if he is dragging you into court again, that the ex pays for some of the fees. Sometimes if the spouse clearly afford the recurring fees, maybe some agreements can be made out of court so that once you get in there, it isn't as long and drawn out. Link to comment
catfeeder Posted September 22, 2010 Share Posted September 22, 2010 What is the ex trying to get out of you that's worth wiping yourself out to defend against? Link to comment
Fudgie Posted September 23, 2010 Share Posted September 23, 2010 I definitely think you should talk to a lawyer about a payment plan. Retirement funds are so important; I don't think you should wipe it out. Link to comment
Miss Firecracker Posted September 23, 2010 Share Posted September 23, 2010 It will be taxable as ordinary income + a 10% penalty for early withdrawal. At least that is what I've always been told. Link to comment
avman Posted September 23, 2010 Share Posted September 23, 2010 It will be taxable as ordinary income + a 10% penalty for early withdrawal. At least that is what I've always been told. Yes that's correct. Sometimes you can withdraw from a retirement account for hardship reasons like medical bills but I don't think legal bills qualifies. Try to work out a payment agreement with your attorney instead. Don't raid the retirement fund if at all possible. If things got really bad you can always declare bankruptcy to get rid of legal bills and your retirement accounts would be protected. Link to comment
confusedmama Posted September 23, 2010 Author Share Posted September 23, 2010 Ok thanks for the information. I have to hire a different attorney, as my old one I am still paying off and he really doesn't want to be in the middle of this mess anymore. In order to hire a new one I have to pay a retainer fee of $2000-2500 up front. The retirement funds I'm talking about are out of state that I haven't taken the time to move, so they aren't collecting any interest more of they are just sitting in the acccounts. It's the withdrwal fee I was/am concerned about as that amount will make it so I can cover lawyer fee AND taxable amount. Link to comment
danneva Posted September 25, 2010 Share Posted September 25, 2010 How about the power of attorney? - The agent designated in a power of attorney to act on your behalf does not necessarily have to be a lawyer. As we all know that designating a power of attorney helps to ensure actions such as providing direction for investments, requesting distributions, making contributions and changing beneficiary designations. Don’t break-in your retirement account as much as possible or at all possible. Link to comment
avman Posted September 25, 2010 Share Posted September 25, 2010 How about the power of attorney? - The agent designated in a power of attorney to act on your behalf does not necessarily have to be a lawyer. As we all know that designating a power of attorney helps to ensure actions such as providing direction for investments, requesting distributions, making contributions and changing beneficiary designations. Don’t break-in your retirement account as much as possible or at all possible. This is unbelievably dangerous advice. Never, ever, ever, never, ever just hand over power of attorney to someone else and let them run your life. They would have the ability to do everything and anything including putting you in dangerous investments, liquidating your assets, moving all your funds into their name, and so on. Power of attorney should only be reserved for situations where you are unable function and make decisions or very restricted power of attorney can be used in special circumstances. Link to comment
confusedmama Posted September 27, 2010 Author Share Posted September 27, 2010 Not looking for power of attorney as I am still able to function mentally and physically. I am simply looking for a way to pay an attorney's up front fee in order to fight the appeal from my ex-husband. I have no credit left on my credit cards thanks to housing problems that insurance wouldn't cover and I don't have any available cash. My retirement in these 2 states is not gaining interest any longer-it is just sitting there and although I know I can move it into my retirement here, I need the $$ to get through these court costs. So confused and angry Link to comment
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