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5. Significant Benefit
Respondent contends that petitioner received benefits from
the proceeds of the section 401(k) distribution in the form of:
(1) Payment of joint credit card liabilities; (2) payment of the
second mortgage held by Union Federal; (3) payment of petitioner
and Mr. Glenn’s 2001 joint tax liability; and (4) payment of
attorney’s fees relating to petitioner and Mr. Glenn’s divorce.
However, petitioner contends that she did not accumulate the
credit card debts; therefore, the payment of those liabilities
should not be considered a benefit to her. Petitioner further
contends that the other referenced payment benefits to her were
paid by Mr. Glenn’s salary and not the proceeds from the section
401(k) distribution.
Petitioner admitted at trial that her name was on the credit
card accounts and that she used one of the credit cards to make
purchases. Petitioner also admitted at trial that her name was
on the mortgage note. While it is not totally clear from the
record where all of the proceeds from the section 401(k) plan can
be traced, it seems logical to the Court that the large amounts
of the credit card liabilities, the second mortgage, and the 2001
joint tax liability were satisfied because of the distribution
from Mr. Glenn’s section 401(k) plan. Therefore, we find that
petitioner did benefit from the proceeds of the section 401(k)
distribution.
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