I am planning on delving into real estate investing after my divorce process is finalized. I am trying to figure out how to best divide my assets in my divorce so that I am put into the best financial position for buying my next income property. I have some money in my 401k and I have some equity in my home (about the same amount in each). My question is; Do I take a home equity loan out to pay my ex-spouse and (have almost no equity left over) or give my ex-spouse her share of the equity through my 401k (and pay early withdrawal penalties)? Which looks better to a bank for loan purposes? This may be sort of a complicated question as there could be several factors involved but I'm hoping y'all may have some insight into this. Thank you!