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If i pay out a property settlement in a divorce do i owe her extra to cover the taxes? The judges decision does not state that

Now That the divorce is final and I am preparing to settle, my wifes attorney wants more out of my retirement to cover for her taxes. No where in the final certified copy does it say that i must pay this property settlement in cash, or that she will not accept a portion from my retirement. My retirement Company will not roll over a dime more than what is stated on the divorce papers. What do you think?

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Attorney answers (1)

Reputation Level 9
This came under the category of a "tax" question on the AVVO list. Generally if your retirement paid out anything from your retirement account the tax affects would be yours unless there is a Qualified Domestic Relations Order ("QDRO"). Generally a QDRO would relieve you of the tax and your former wife would have. From a tax standpoint the taxability is whether all tax requirements are met and you should cunsult with a tax professional about that because if tax requirements are not met you may have the tax anyway.

Obviously tax has a financial impact. If the decision does not address then there is a financial difference that either will be worked out and agreed upon or litigated further by asking the court to sign a QDRO or otherwise bring that matter before the court. You should have a divorce attorney advise you on the specifics of your matter and what can be expected.
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