Divorce is never easy. And mixing emotions with money can make it even harder. So, seeking the consultation of a financial planner can be very helpful during this stressful time.

What are some things you may want to consider?

• Do you live in a community property state or a common law state? Under community property laws, property acquired during marriage is to be split evenly. Under common law, various states apply various factors in determining equitable distributions, such as: length of marriage, education levels of each party, career earning potential, size of the accounts, etc.

• Craft your Qualified Domestic Relations Order (QDRO) carefully (with your 401k plan description in mind) - your Judge will sign off on this and your plan administrator will execute it in accordance with the Employee Retirement Income Security Act (ERISA).

• Remove funds only after your plan administrator has signed off on the QDRO - no penalties or taxes should be incurred at this point, as distributions of property under a properly executed QDRO are typically not seen as taxable events.

• How to take your distribution? Preferably as a direct IRA rollover or TSP rollover (if you were a federal employee), as a cash out (if the QDRO permits), or wait until your ex (the account owner) retirees. Needless to say, a cash out should be your last option.

Distributions from a tax-deferred vehicle, e.g., a 401k or a SEP IRA, pursuant to a QDRO can be very complicated and one should seek legal, tax, and financial advice before embarking on this endeavor. If you have a question about distribution of assets during a divorce proceeding please feel free to contact Intelligent Investing at www.mynmfp.com/new-clients. For more information about this topic, please click on the title above.