What does "tax-effecting" retirement mean?
Because pre-tax retirement will be taxed when it is cashed out, it is not accurate to compare retirement assets to cash assets. For example, $100,000 in a 401k which has embedded taxes is not equal to $100,000 in a savings account that has no taxes. To make a more accurate comparison, it may make sense to tax effect the retirement and include the tax calculation in the value. So, if you estimate the 401k will be taxed at 20% in retirement, you could tax effect it to $80,000 and that may be a more accurate comparison to the $100,000 in cash.
Balance Sheet
Learn about a balance sheet and how it can help you in the property division analysis.
Retirement
Walk through various considerations when valuing and dividing or buying out retirement.
Property Division Legal Overview
Learn about property division law generally and key differences between community property states and equitable division states.
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