# Tracing of Marital and Non-Marital Value of Jack Doe’s 401K

by | Oct 24, 2023 | Case Study | 0 comments

1. At the date of marriage on [MM/DD/YYYY], Jack’s 401K had a market value of \$86,183.  From June 8, 2014 until [MM/DD/YYYY], Tim contributed \$7662. Excluding the loan repayment of \$2151, the account had a [MM/DD/YYYY] market value of \$97,422. The full \$7662 in contributions is marital. From the [MM/DD/YYYY] market value of \$97,422 we deduct \$7662, resulting in \$89,760. The original \$86,183 is 96% of \$89,760. Consequently the proportion of the gain of \$3,577 (\$89,760-\$86,183) attributable to non-marital is \$3,444 (96% of \$3,577) and \$133 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$91,778 (\$86,183 [MM/DD/YYYY] value] + \$3,444 [% of gains] + \$2,151 [loan repayment]). The marital portion is \$7,795 (contributions of \$7662 + \$133).
Marital=\$7,795. Non-Marital =\$91,778.
2. From [MM/DD/YYYY] until [MM/DD/YYYY] cumulative employee and employer contributions totaled \$17,722. The account had a market value as of [MM/DD/YYYY] of \$121,018. The full \$17,722 in contributions is marital. From the [MM/DD/YYYY] value of \$121,018 we deduct \$17,722, resulting in \$103,296. The non-marital value of \$91,778 as of [MM/DD/YYYY] is 89% of 103,296. Consequently, the proportion of the gain of \$3,723 (\$103,296-\$99,573 [MM/DD/YYYY] value]) attributable to non-marital is \$3,313 (\$89% of \$3,723) and \$410 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$95,091 (\$91,778 [MM/DD/YYYY] value] + \$3,313 [% of gains]). The marital portion is \$25,927 (\$7795 [MM/DD/YYYY] value] + \$17,722 [contributions] + 410 [% of gains].
Marital =\$25,927. Non-Marital=\$95,091.
3. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$19,968. The account had a market value as of [MM/DD/YYYY] of \$158,952. The full \$19,968 in contributions is marital. From the [MM/DD/YYYY] market value of \$158,952 we deduct \$19,968, resulting in \$138,984. The non-marital value of \$95,091 as of [MM/DD/YYYY] is 68% of \$138,984. Consequently, the proportion of the gain of \$17,966 (\$138,984-\$121,018) attributable to non-marital is \$12,217 (68% of \$17,966) and \$5,749 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$107,308 (\$95,091 [MM/DD/YYYY] value] + \$12,217 [% of gains]. The marital portion is \$51,644 (\$25,927 [MM/DD/YYYY] value] + \$19,968 [contributions] + 5,749 [% of gains]).
Marital=\$51,644. Non-Marital =\$107,308.
4. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$23,539. The account had a market value as of [MM/DD/YYYY] of \$221,631. The full \$23,539 in contributions is marital. From the [MM/DD/YYYY] value of \$221,631 we deduct \$23,539, resulting in \$198,092. The non-marital value of \$107,308 as of [MM/DD/YYYY] is 54% of \$198,092. Consequently, the proportion of the gain of \$39,140 (\$198,092 -\$158,952 [MM/DD/YYYY] value]) attributable to non-marital is \$21,136 (54% of \$39,140) and \$18,004 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$128,444 (\$107,308 [MM/DD/YYYY] value] + \$21,136 [% of gains]. The marital portion is \$93,187 (\$51,644 [MM/DD/YYYY] value] + \$23,539[contributions] + \$18,004 [% of gains]).
Marital = \$93,187. Non-Marital =\$128,444.
5. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$24,985. The account had a market value as of [MM/DD/YYYY] of \$227,548. The full \$24,985 in contributions is marital. From the [MM/DD/YYYY] value of \$227,548, we deduct \$24,985, resulting in \$202,563. The non-marital value of \$128, 444 as of [MM/DD/YYYY] is 63% of \$202,563. Consequently, the proportion of the loss of \$19,068 (202,563-221,631 [MM/DD/YYYY] value]) attributable to non-marital is \$12,013 (63% of \$19,068) and \$7055 is marital.
Therefore, the non-marital value as of [MM/DD/YYYY] is \$116,431 (\$128,444 [[MM/DD/YYYY] value] – 12,013 [% loss]. The marital portion is \$111,117 (\$93,187 [MM/DD/YYYY] value + \$24,985 [contributions] – \$7055 [% of loss]).
Marital =\$111,117. Non-Marital =\$116,431.
6. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$26,983. The account had a market value as of [MM/DD/YYYY] of \$324,039. The full \$26,983 in contributions is marital. From the [MM/DD/YYYY] value of \$324,039, we deduct \$26,983, resulting in \$297,056. The non-marital value of \$116,431 as of [MM/DD/YYYY] is 39% of \$297,056. Consequently, the proportion of the gain of \$69,508 (\$297,056 -\$227,548 [[MM/DD/YYYY] value]) attributable to non-marital is \$27,108 (39% of \$69,508) and \$42,400 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$143,539 (\$116,431 [MM/DD/YYYY] value] + \$27,108 [% of gains]). The marital portion is \$180,500 (\$111,117[MM/DD/YYYY] value] + \$26,983 [contributions] + \$42,400 [% of gains])
Marital =\$180,500. Non-Marital =\$143,539.
7. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$11,530. The account had a market value as of [MM/DD/YYYY] of \$396,167. The full \$11,530 in contributions is marital. From the [MM/DD/YYYY] value of \$396,167, we deduct \$11,530, resulting in \$384,637. The non-marital value of \$143,539 as of [MM/DD/YYYY] is 37% of \$384,636. Consequently, the proportion of the gain of \$60,597 (\$384,636 – \$324,039 [MM/DD/YYYY]) attributable to non-marital is \$22,421 (37% of 60,597) and \$38,176 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$165,960 (\$143,539 [MM/DD/YYYY] value] + \$22,421 [% of gains]). The marital portion is 230,206 (\$180,500 [MM/DD/YYYY] value] + \$11,530 [contributions] + \$38,176 [%of gains]).
Marital =\$230,206. Non-Marital=\$165,960.
8. From [MM/DD/YYYY] until [MM/DD/YYYY], cumulative employee and employer contributions totaled \$1,434. The account had a market value as of [MM/DD/YYYY] of \$478,278. The full \$1,434 in contributions is marital. From the [MM/DD/YYYY] value of \$478,278, we deduct \$1,434, resulting in \$476,844. The non-marital value of \$165,960 as of [MM/DD/YYYY] is 35% of \$476,844. Consequently, the proportion of the gain of \$80,677 (\$476,844-\$396,167 [MM/DD/YYYY] value]) attributable to non-marital is \$28,237 (35% of \$80,677) and \$52,440 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$194,197 (\$165,960 [MM/DD/YYYY] value] + \$28,237 [% of gains]). The marital portion is \$284,080 (\$230,206 [MM/DD/YYYY] value] + \$1,434 [contributions] + \$52,440 [% of gains].
Marital =\$284,080. Non-marital =\$194,197.
9. From [MM/DD/YYYY] until [MM/DD/YYYY], there were no employee or employer contributions. The account had a market value as of [MM/DD/YYYY] of \$391,234. The non-marital value of \$194,197 as of [MM/DD/YYYY] is 50% of \$391,234. Consequently, the proportion of the loss of \$87,044 (\$478,278 [MM/DD/YYYY] value]- \$391,234) attributable to the non-marital value is \$43,522(50% of \$87,044) and \$43,522 is marital. Therefore, the non-marital value as of [MM/DD/YYYY] is \$150,675 (\$194,197 [MM/DD/YYYY] value] – \$43,522 [% of loss]). The marital portion is \$240,558 (\$284,080 [MM/DD/YYYY] value] + 0 [contributions] – \$43,522 [% of loss]).
Marital =\$240,558. Non-Marital =\$150,675.
10. From [MM/DD/YYYY] until June 6, 2023, there were no employee or employer contributions. The account had a market value as of June 6, 2023 of \$425,994. The non-marital value of \$150,675 as of [MM/DD/YYYY] is 35% of \$425,994. Consequently, the proportion of the gain of \$34,760 (\$425,994-\$391,234) attributable to non-marital is \$12,166 (35% of \$34,760) and \$22,594 is marital. Therefore, the non-marital value as of June 6, 2023 is \$162,841 (\$150,675 [MM/DD/YYYY] value] + \$12,166 [%of gain]). The marital portion is \$263,152 (\$240,558 [MM/DD/YYYY] value] + 0 [contributions] + \$22,594 [% of gains]).
Marital =\$263,152. Non-Marital=\$162,841.

### Conclusion:

This analysis systematically traces the contributions added to Jack’s 401k post-marriage, and treats all of those contributions as marital. Furthermore, the tracing details how much of the gain or loss each year net of contributions is attributable to the marital as well as the non-marital amounts and brings this forward to the present in a very detailed manner. As such, at the time of this submission, the non-marital value is \$162,841 and the marital value is \$263,152

Respectfully submitted,
Greg Gann