Section 16.16 Tax Implications in Valuation

• Library: Family Law Deskbook and 2014 Supp

3. (§16.16) Tax Implications in Valuation

Missouri courts have routinely considered the income tax implications of hypothetical distribution when considering valuation of deferred compensation arrangements. See, e.g., Lewis v. Lewis, 637 S.W.2d 207 (Mo. App. E.D. 1982). For example, an employee who elects to receive a lump-sum distribution of the employee’s interest in a defined contribution plan would be required to pay federal and state individual income tax on the distribution. While the court is permitted to consider tax implications...