Briefcase Informed Divorce - sponsored by Flexx Law, P.S.

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  HOME
  Saving Your Marriage
  Washington State Law
  The Legal Process
  Choose your Attorney
  Working with your Attorney
  Save $ On Your Divorce
  FINANCIAL PLANNING
· Valuing your property
· QDROS
· Maintenance & Taxes
· Estate Planning Issues
· Child Support & Taxes
· Financial Planning - advice from the experts
  Your Career Goals
  Ask the Professionals
  How to Negotiate
  Emotional Side of Divorce
  Bringing It All Together - Professional Team Work
  Share Your Experience
  King County Resources
  Suggested Reading
  International Family Law
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  Site notes
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Financial Planning, Taxes, and Divorce - QDROS

Normally, simply transferring assets between spouses incident to a divorce should not 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.