A 401(k) is often the most valuable asset being divided in a divorce. Many people don‘t realize the implications of dividing a 401(k). First, Uncle Sam is closely watching to ensure the account is properly divided with a qualified domestic relations order (QDRO). If the funds are transferred without a valid QDRO in place, the original account owner will have to pay taxes and possibly penalties. Second, there may be a loan that has been taken out on the 401(k). How will you account for that? Other important questions to consider before reaching a divorce agreement are whether the entire amount of the 401(k) be divided, or just a portion. And, if you will be the recipient of the transfer, where should the money be directed? Divorce financial planners have specialized education, training and skills in helping you to think through these questions and come to a clear decision.