Dividing your assets during your divorce in Florida is often one of the most difficult processes. You need to come up with valuation for all marital property and reach an agreement that the court will find to be fair and equal. This can take a lot of work, especially if you have difficult assets to divide. Often retirement accounts may pose an issue, but if you have a 401k, you will discover that it actually makes division rather easy.
Forbes explains that a 401k has a daily cash value. This means that you can easily determine the valuation, which is often a tricky part of dividing retirement accounts. You also have the option to divide a 401k in any way that you want without a lot of restrictions.
One of the best things about a 401k is that as a spouse, you can roll over any 401k funds from your spouse to another 401k without any penalties. This can save you a lot on taxes. Another way to avoid taxes but that allows you to take the money out of the account is with a Qualified Domestic Relations Order. A QDRO lets you avoid taxes if you withdraw the money before the age of 59 1/2.
Do note, though, that even withdrawing through the QDRO, you will still have to pay income taxes on the money. You only avoid the tax penalty for an early withdrawal. So, the best option to maximize the money is probably to roll it over into your own account.
