|
Navigate:
|
How can a divorcing couple avoid tax penalties?The division of a pension plan in favor of a spouse or former spouse is not a taxable event; distributions, however, normally are and may be subject to a 10 percent penalty if done early. However, when the distribution is done under a Qualified Domestic Relations Order (QDRO), which pays all or part of the benefits to a nonwinning spouse, the adverse tax consequences may be avoided. |
Locate a Professional:Online Divorce Service:
Divorce Information:
Frequently Asked Questions: |