Washington court upholds $328,715 divorce payout from husband's 401(k) despite tax concerns

A divorce settlement can look equal on paper but create different financial challenges when one spouse receives retirement savings instead of readily available cash. That issue arose in a Washington divorce case in which a woman was awarded $328,715.53 as an equalisation payment, but the money was to come from her former husband's 401(k) account rather than his cash holdings.

She argued that the arrangement could expose her to taxes and early withdrawal penalties if she needed access to the funds before retirement.The dispute reached the Washington Court of Appeals after the woman challenged several parts of the divorce settlement, including the division of marital property, spousal maintenance and attorney's fees. In its October 29, 2026, unpublished opinion in In re Marriage of Goldstein, case number 41005-6-III, available on Justia, the appellate court upheld the trial court's decisions.