A certain percent deducted from yours and your spouses assets in your retirement fund . That is to deteer the total amount . Because someday you will have to pay taxes on this. Supposedly this would leave you money to pay taxes when you do take it out.
Applying a tax deduction to retirement benefits is normal when parties are getting a divorce. The reason for that is that retirement benefits are tax deferred. The usual deduciton is 20%. If you are both keeping your own retirement benefits, it is normal and proper to do the 20% tax discount. If the retirement benefits are going to be divided equally by qualified domestic relations orders (QDROs), you don't need the 20% discount as you will both simply pay the taxes on the money when it is drawn out or received at retirement.
There is nothing sinister or inappropriate with your spouse's attorney advocaitng the 20% deduction.
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