That depends. Equitable division of property is generally not taxable to the recipient nor deductible to the payor. On the other hand, periodic alimony received is generally income taxable to the recipient and deductible to the payor; whereas, lump sum alimony is more like property division. It is paid with after tax dollars and is therefore not taxable to the recipient or deductible for the payor. Income taxation incident to divorce can be extraordinarily complex. It contains many traps for the unwary and can be fraught with peril. Be careful. You are wisest to consult a competent lawyer or another professional tax advisor with these kinds of questions.
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If the QDRO is properly drafted, signed by both parties, and accepted by the court, the transfer of the 401K funds to your rollover IRA will not be taxable to you.
This is not intended to be legal advice, and is general in nature.
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