Financial planning education

Settlement Asset After-Tax Comparison

Compare two illustrative property splits to see how taxes and early-distribution rules can make equal stated values unequal after tax. This liquidation-today estimate is a discussion aid, not tax, legal, or investment advice.

Written for households managing substantial retirement and investment assets. Investable assets such as brokerage accounts, IRAs, 401(k)s, and cash equivalents differ from home equity. No account details or personal information are requested.

Enter your tax assumptions

Enter flat rates to illustrate this liquidation scenario. The calculator does not estimate progressive tax brackets, deductions, credits, filing status, or state-specific rules.

Federal ordinary rate, percentFederal long-term capital gains rateState income tax assumption, percent

Age assumption for early distributionsSpouse ASpouse B

Include an optional 3.8% net investment income tax assumption on modeled taxable gains where applicable. Eligibility is not determined here.

Compare each asset in both proposed splits

Enter each spouse's proposed share. Values are separate inputs so different basis allocations can be represented.

Asset 1 type

Spouse A

Spouse A stated asset value

Spouse B

Spouse B stated asset value

Learn more: rules and sources behind the estimates

Property transferred between spouses or former spouses incident to divorce generally carries the transferor's adjusted basis. The transfer itself generally does not recognize gain or loss under section 1041. IRS Publication 504.
A taxable distribution to an alternate payee under a qualified QDRO can avoid the 10% additional early-distribution tax under section 72(t)(2)(C), but is generally ordinary income. This estimate assumes a qualifying plan distribution paid to the alternate payee, not a rollover. IRS Publication 575 and IRS retirement topics: divorce.
An IRA transfer incident to divorce under section 408(d)(6) is generally not taxable at transfer. A later IRA withdrawal before age 59½ does not get the QDRO exception solely because the IRA came from a divorce transfer. Other early-distribution exceptions may apply. IRS Publication 504 and IRS Publication 590-B.
Qualified Roth IRA distributions are not included in gross income; nonqualified Roth earnings can be taxable. The calculator assumes qualification and does not model nonqualified Roth earnings. IRS Publication 590-B.
The section 121 exclusion may apply when ownership and use requirements are met, with rules and exceptions. The checkbox is an assumption, not an eligibility decision. IRS Publication 523.