Cashing out your 401(k) before a divorce may be legal, but it could have significant financial repercussions. If you withdraw funds from your 401(k) before reaching 59 and a half, you will likely face a 10% early withdrawal penalty, in addition to income taxes on the withdrawn amount. Furthermore, withdrawing funds from your 401(k) before a divorce may be viewed negatively by the court, as it could be seen as an attempt to conceal or dissipate marital assets, potentially impacting the final division of assets.