I know of several individuals who have felt it better to take the tax hit and just "suck it up" so that they could be sure they could have SOME of the money rather than wait for the eventual confiscation that ends with them having nothing. It's not a confiscation in the Cypriot sense, but more like a confiscation in that the only thing allowed to be in the retirement accounts end up being a rapidly depreciating asset issued by the US Gov't.
I'm sortof doing that, actually. I'm in the process of buying about 5 hectares of mostly undeveloped forest land. I live in a climate wherein trees grow readily without help, so according to the US government, the actual land is worthless; but it's still a viable investment under some conditions. Most of the value, according to everyone else, is the house that sits on the land. The house is barely livable, and I consider the ~3K trees to be the valuable part of the deal. I figure that if I must, I can grow a garden and sell firewood, should the pols succeed in taking the remainder.
How much do you trust your wife, LOL? (There is a potential exemption buried in divorce law, believe it or not! It doesn't work for everyone, but maybe it might work for you?)
I trust her fine, and she is waking up, but that doesn't yet matter.