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125,000/2 = 62,500 :)

Somehow you'll have to liquidate holdings to equal that amount in YOUR 401k. Aside from having to split the amount I don't think there will be any other penalties, i.e. 10% tax on court ordered disbursement for you.

She can probably roll that amount into an IRA, but if she takes the cash there might be a 10% penalty for her. I'm not sure.

Check out IRS Pub 590, pg 27 on IRA's. I think it may be covered there.

Get a good lawyer.
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