Divorcing couple splitting 401K

[Pacun]

It is my understanding that if a spouse has $500K on his/her 401k, if they get divorced, the other spouse can get half of it and spend it and only pay federal and state taxes, no penalty involved.

In order to qualify, what does the divorce attorney have to do? I mean what are the requirements for QDROs that attorneys should be careful when drafting divorce agreements?

[JohnH]

Here is some good info on QDRO's

http://www.dol.gov/ebsa/publications/qdros.html

http://www.dol.gov/ebsa/faqs/faq_qdro.html

Buried deep within one of the appendices is some sample language from IRS. Of course, as we all know, IRS cautions that we can't rely upon their advice...

[Pacun]

Excellent document JohnH. Thank you.