The House or the IRA? After-Tax Value in a Divorce: what each asset carries
2026 law · reviewed September 7, 2026
| Asset | What comes off the top | Rate |
|---|---|---|
| The house | The mortgage; selling costs; capital gains tax on the gain above the single filer's exclusion | $250,000 excluded; 15% or 20% on the rest, plus the 3.8% surtax where it applies |
| A traditional IRA or 401(k) | Ordinary income tax on every dollar withdrawn; the 10% penalty before 59½ (not from a plan under a court order) | The recipient's bracket |
| A Roth account | Nothing, once qualified | 0% |
| A brokerage account | Capital gains tax on the built-in gain; the basis carries over (§ 1041) | 15% or 20% |
The costs attached to a house and to a retirement account received in a divorce (§§ 121, 1041, 408(d)(6), 72(t)).
Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.