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Asked 12/2/2007

Will I have to pay taxes on money paid to me after my divorce

I recently got divorced and part of the agreement was I was to recieve money for my 1/2 of equity in a home me and my now ex husband were buying.He kept hte home and I had ot relocate will I have to pay taxes on the money I recieved.I will also get 1/2 of his 401k as he will mine it is to be set up in another account then I am going to roll it over into my 401k account will I have to pay taxes on this as well even if I keep it in a 401k account.

 
 
 
 
Answers

Answer 1/3 - Submitted 12/2/2007

It is still a form of "income" for you, so it is taxable.

 
 

Answer 2/3 - Submitted 2/21/2009

As long as there is no constructive use, you don't pay anything on it. Direct rollovers are not taxed until you withdrawal. My hustand has had many jobs and has rolled over many 401/IRAs and never a had any tax consquences.

 
 

Answer 3/3 - Submitted 4/20/2009

The half of the equity is not taxable if its under 250,000. As long as you continue to rollover the 401K, it's not taxable, only becomes taxable if you make an early withdraw from it.

 
 
 
 
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