When it comes to negotiating a divorce, many couples – or their advisors or attorneys – pay little or no attention to retirement and investment accounts, assuming that they can simply be split in two.
However, that’s often a mistake, and a potentially very expensive one.
These accounts, and their holdings, require careful examination before a “fair” division can be determined. And different types of retirement accounts have their own rules for tax treatment and access to the money. Also, two investments can appear to have the same value, but in fact have dramatically different tax liabilities.
The Wall Street Journal recently published an article on this important topic. You can read the entire April 6, 2014 article here.