Enough is enough

[LdiJ]

Thanks everyone for the posts. I am not usually a big forums poster but after reading the letter from my EX's attorney, I was seriously ticked off.

Yes, I know better than to actually take any advice from someone I do not know as to be the law.

I realize that the money I continued to pay her could and would most likely be considered a gift, I just figured that she would realize I was fulfilling the agreement in spirit, but that is not the way self centered people work.

I will consult an attorney and have the actual divorce document reviewed. My guess is that my blood sucking psycho ex wife will get even more of my money and I will also have to pay taxes on that as well, so be it.

I will just have to take satisfaction that she will get what she deserves.

And guessing from her health right now, she is...

Karma will prevail!

If you handle it properly, you will not have to pay any tax on the money coming from your 401k.

Your 401k should be divided (25K to her, the balance to you) via a QDRO (qualified domestic relations order). That takes the 25k and puts it into a separate retirement account for her. If she then takes a distribution on the money, the taxes are on her.

 

[Bali Hai]

If you handle it properly, you will not have to pay any tax on the money coming from your 401k.

Your 401k should be divided (25K to her, the balance to you) via a QDRO (qualified domestic relations order). That takes the 25k and puts it into a separate retirement account for her. If she then takes a distribution on the money, the taxes are on her.

I'm sure this is a big comfort to OP.

Ex-wife gets $25k, account worth $10k and OP still owes $15k. All tax free to OP!! What a deal!!

 

[mistoffolees]

If you handle it properly, you will not have to pay any tax on the money coming from your 401k.

Your 401k should be divided (25K to her, the balance to you) via a QDRO (qualified domestic relations order). That takes the 25k and puts it into a separate retirement account for her. If she then takes a distribution on the money, the taxes are on her.

The tax info is correct and he should use a QDRO. The numbers are not necessarily correct, though.

If the decree says he owes her $25 K, then he has to pay that amount. If, OTOH, the decree says he has to pay her half of the value, then the amount could be quite different.

Until he provides the exact wording, it is impossible to say what he owes.

 

[LdiJ]

The tax info is correct and he should use a QDRO. The numbers are not necessarily correct, though.

If the decree says he owes her $25 K, then he has to pay that amount. If, OTOH, the decree says he has to pay her half of the value, then the amount could be quite different.

Until he provides the exact wording, it is impossible to say what he owes.

I was not aware that there was any uncertainty as to the numbers. If the numbers are different that's fine. The principle remains the same.