Congratulations. You made it through your divorce. It’s all over now Right? It’s not?
Teresa thought she had made a good deal in her divorce settlement with Clark. Clark had agreed to pay her $55,000 as a property settlement and she would get to keep her pension plan worth $70,000.
She was happy when she got a check from Clark for the $55,000. But a year later, a letter arrived from the IRS. It said Teresa owed $15,000 for taxes and an early-withdrawal penalty from her pension plan even though she had not made any withdrawals.
When she called the plan administrator, she discovered that Clark had withdrawn the funds to pay her property settlement. He was able to do so because she had given him power ...