When you plan a future with your spouse, you entrust them with your vision of what you want the future to hold for you. And your partner reciprocates as a show of trust.
In a marriage, the future goes deeper than having kids. That means planning financial security for both of you, which includes setting up a plan for the future. You can choose to open a 401(k) plan to start stashing away part of your paycheck for your golden years.
However, what happens when you find yourself debating on whether to forge your partner’s signature to make a withdrawal or transaction from your 401(k) account?
So, is it illegal to forge their signature? Let’s find out.
Can You Go to Jail for Forging a Signature?
When you use your spouse’s signature without their authorization, you are engaging in a criminal act.
Depending on your jurisdiction and the specific circumstances surrounding the case, you may face different legal charges.
These are some of the legal charges you may face.
Forgery charges
The most common charge that is associated with falsifying signatures is forgery.
Forgery is considered a felony in many jurisdictions, and the severity of penalties varies based on factors such as the amount of money involved and the specific laws in the jurisdiction.
When you are charged with forgery, you can find yourself paying penalties or on probation. You can also face imprisonment if you are guilty of such a crime.
Fraud charges
Committing forgery to gain access to a 401(k) account is a fraudulent act. Since you used a falsified signature to access funds and assets from the account, you can be charged with fraud.
When you face fraud charges, you can end up paying a hefty fine, and you may also be at risk of imprisonment. Furthermore, your spouse can demand restitution as a victim of the fraudulent activities.
Embezzlement charges
The other charge that you may face is embezzlement. When you falsify your partner’s signature to access funds in a 401(k) account, you are misappropriating funds from a retirement account.
The penalties for this may include jail time or a fine, depending on the amount of money involved in the embezzlement.
Tax evasion
Accessing retirement funds with false information may have tax implications. That withdrawal, in this case from the 401(k) account, was not appropriately reported to tax authorities. Penalties for tax evasion include imprisonment and fines.
Civil penalties
In addition, you will find yourself facing civil penalties for falsifying your spouse’s signature.
Your spouse is entitled to restitution. They can file legal charges against you, and the affected financial institution can also take legal action against you. Civil penalties can result in you paying for the withdrawn funds, plus additional damages.
Consequences of forging your spouse’s signature
If forgery is detected or reported, you may find yourself facing severe implications. Here are the consequences of falsifying your spouse’s signature:
Legal consequences
You will, of course, find yourself facing legal charges. The financial institution that manages your 401(k) account might decide to file legal charges against you. Furthermore, your partner can also decide to file a legal pursuit against you.
Reversal of the transaction
When the financial institution managing your 401(k) account finds out you forged their client’s signature, they will investigate the unauthorized withdrawal.
Any discrepancies found may lead to a reversal of the money withdrawn back to the 401(k) account. They might go a step further by barring any future attempts of withdrawal that you may try.
Penalties and fees
The financial institution that manages your 401(k) can pose penalties and fees for the unauthorized withdrawals or transactions you have made.
You might find yourself in an unfavorable position with these kinds of penalties. The severity of the penalties depends on the terms and conditions of the 401(k) plan and the policies the financial institution that manages your 401k account has.
Tax implications
When you withdraw funds using a falsified signature and the funds are withdrawn immaturely, you are subject to early withdrawal penalties and income tax. That means on top of any penalties you are supposed to pay, you also have to pay for tax penalties.
Divorce proceedings
Finding yourself in a forgery case, especially when it involves your spouse’s signature, has devastating implications for divorce proceedings.
The forgery is considered when dividing any marital assets and the property you may have made together, putting you at a disadvantage. Disputes and legal proceedings related to the unauthorized withdrawal are inevitable, and your standing will be debatable.
Final Thoughts
For you to make certain types of withdrawals from your 401(k) account, you need spousal consent. Breaking this clause damages, if not destroys the trust between you and your spouse.
If you want to avoid the trouble that comes with all the risks of forging your spouse’s signature, you could try open communication about financial matters. Also, inform your spouse about any activities and transactions within the 401(k) account.