Dividing your property can be one of the most challenging and convoluted aspects of your divorce. What appears to be an easy decision such as I want the house, you keep the cars, may in the end deliver you a settlement you hadn't bargained for.
Janet and Jake are getting divorced and they are both age 64. They had two assets: a 401k worth $120,000 and a money market worth $120,000. Janet was really concerned about retirement and wanted to take the retirement fund. It felt more secure to her. Two years later, they each wanted to buy a small house. Jake took $90,000 for a down payment out of his money market fund to make the down payment on his house. Janet asked for $90,000 from the 401k to make a down payment on her house but the net amount she realized was only $60,000 due to the taxes she owed on money from a retirement fund!
Remember that you cannot compare a cash account with a retirement fund because of the tax issues. This is one area that many people do not think about.
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