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Felicia S Esq., Expert
Hello and thank you for using Just Answer!
Felicia S Esq., Expert
Typically, what people in this situation do, is rather than give alimony for her portion of the 403(b) account, you would award her a portion of the account (Depending on the state you're in she is likely entitled to a equitable portion of that if it was accrued during the marriage). You do this via a qualified domestic relations order, which allows the amount to be rolled over into an account for her without tax implications. Then from there she can draw down on her account however she chooses and their may be tax implications for that like normal.
Felicia S Esq., Expert
Are there any other questions I can answer regarding this issue today?
Felicia S Esq., Expert
So, it really depends. You still have the normal taxes due to whether you choose to withdraw from a 403(b) account or not. But if you were withdrawing from your account only to pay her, then you can divide the account and she can then withdraw as she sees fit.
Spousal maintenance depends on a variety of factors, but the court may find that if you divide that account and receive similar monthly amounts otherwise, that it's not needed.
Felicia S Esq., Expert
The qualified domestic relations order is tax document also filed in family court that allows you to divide the 403(b) account without tax implications from the division.
Felicia S Esq., Expert
It's not a one time payment, the administrator of the 403(b) will get the QDRO to see how much she is entitled to, they'll divide the account accordingly, then work with her to determine how she wants to access the money.