There may be one-time expenses related to the transition, such as making a down payment on a new house or paying attorney s fees. The lack of ready money can delay or even aggravate the negotiations over the divorce settlement which may only further reduce available cash. In my practice as a certified divorce planner, I often find that people do not even consider using these assets for pre-retirement needs. There seems to be two reasons. The first is simple mind-set.
People think retirement assets are only for retirement.
And yet there is no objective reason why that must be the case. The second reason is more concrete. One method is available only to divorcing couples while the other three can be used by anyone. These methods can help some divorcing couples find a mutually agreeable settlement that would otherwise elude them. Money withdrawn from a retirement account is taxable the year it is withdrawn and there is no way around that.