Is an IRA a marital asset?
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Is an IRA a marital asset?
Other than these exceptions, property acquired during the marriage is usually marital property. Even a retirement account, which can only be in an individual name (there is no such thing as a joint IRA) is marital property if funds are contributed to it from earnings during the marriage.
How is an IRA split in a divorce?
The correct way to divide IRA funds in compliance with a divorce decree is to do a trustee-to-trustee transfer (a direct transfer) of the IRA funds, moving them directly from one spouse’s IRA to the other spouse’s account. If done correctly, the IRA will be split and there will be no tax liability for either spouse.
How do you split up an IRA in a divorce?
How do I Divide an IRA in Divorce? The spouse who will receive a portion of the IRA will need to have an IRA in their own name. The easiest way to do this is to open an account with the custodian where the IRA being split is held. A custodian is a company who holds the account.
Are IRA’s considered community property?
Assets held in an IRA will be community property to the extent that contributions were made to the account and earnings accrue during the marriage. It’s important to keep in mind that community property is like ice cream.
