Possible penalties: If the funds are pulled directly (meaning, into cash, rather than rolling over into your ex’s retirement account), you'll usually have to pay a 10% penalty plus possible income tax [4]. And if this amount pushes you over into a higher tax bracket, then be prepared to pay more when it’s time to file.Weaker long-term security: Taking out these funds now reduces your retirement cushion and may force you to work longer to afford the retirement you want.Loss of compound growth: Removing $70,0 ...