In divorces, 401K plans are treated as marital property to be split between spouses. The amount that each person receives depends on the couple's agreement and state and federal laws. The terms of 401K division should be recorded in Qualified Domestic Relations Orders, given to divorcing spouses by plan administrators. These forms need to be filled out a certain way and signed by judges and plan administrators to be valid. Attorneys on both sides should have these documents when exes plans to negotiate on 401K terms.
Divorce is always complex, because it involves two individuals whose experience and worldview are always unique. While many divorces involve similar issues, they are never exactly alike, and the application of New York family law to their facts will be slightly different. In addition, each individual has their own perspective on what is important and what they expect to obtain through the divorce process.