Normally, simply transferring assets between spouses incident to a divorce should not be a taxable event at that time. However, the transfer must be done correctly and for this you need the assistance of your CPA and your attorney. For example, transferring all, or part of one spouse's 401k from one spouse to the other, requires a court order called a QDRO (Qualified Domestic Relations Order) to avoid immediate tax obligations. Pursuant to that qualified domestic relations order, the funds must be transferred into a similar tax deferred investment. Do not try to do this by yourself. It is certainly worth the cost of engaging the services of a CPA and attorney to get it done properly.