Question:
I am looking for financial advice on divorce in regards to a proposed property settlement from my wife.
She intends to keep the marital home. In exchange, she wants to trade home equity for my 401k on a dollar-for-dollar basis.
Since one is post-tax and the other is pre-tax, is there a formula for calculating or comparing the values?
Answer:
Please note that I am not licensed in your state so I am unable to provide specific financial advice or legal advice on divorce.
I am not aware of any specific formula for assessing the value of a 401k in comparison to some other asset. In Michigan (where I practice), the valuation of such items are handled by an accountant through the entry of a Qualified Domestic Relations Order (QDRO) which is included as part of your divorce judgment.
Before entering into any agreement with your wife to offset one asset against another, I would recommend seeking the assistance of an accountant or attorney.
If you need advice on divorce, or wish to take specific action in this matter, you need to contact an attorney immediately for assistance. Cordell & Cordell does represent clients nationwide.
To schedule an appointment with a Cordell & Cordell attorney, including Tamara Hoffstatter, an attorney in the Troy, Michigan, office of Cordell & Cordell, please contact Cordell & Cordell.
