Separate IRA before Divorce?

#1 06-02-2006, 04:39 AM

Chu wrote:

- quote -

> Are there any tax-free methods to separate an IRA as part of
> a separation agreement (not filed in court) and before a
> Divorce Decree is ordered? I would really be most
> comfortable separating my retirement account within the
> separation agreement and not have to keep (or manage) the
> balance until the Divorce Decree (much) later.
> By separating the account now, I think could avoid any
> additional claims on the account, should the market change
> decisively one way or the other. In all cases, the division
> of these assets will be spelled out in the separation
> agreement. Also, since I am buying out the equity in the
> home, I could also use this to "sweeten" the pot (higher %
> of retirement funds, less buy out cash) and lessen my
> out-of-pocket expenses.

Rest assured, and be advised,.....
that an IRA is an INDIVIDUAL retirement account, and as
such, only an individual owns it; not a married couple.

What you may want to do for now, though, is change the
beneficiary.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

03-08-2006, 05:13 PM

Chu wrote:

- quote -

> Are there any tax-free methods to separate an IRA as part of
> a separation agreement (not filed in court) and before a
> Divorce Decree is ordered? I would really be most
> comfortable separating my retirement account within the
> separation agreement and not have to keep (or manage) the
> balance until the Divorce Decree (much) later.
> By separating the account now, I think could avoid any
> additional claims on the account, should the market change
> decisively one way or the other. In all cases, the division
> of these assets will be spelled out in the separation
> agreement. Also, since I am buying out the equity in the
> home, I could also use this to "sweeten" the pot (higher %
> of retirement funds, less buy out cash) and lessen my
> out-of-pocket expenses.

One suggestion: immediately move the amount you expect to
forfeit to the other party into a cash (or equivalent money
market) position within the retirement account.

Get the other party's agreement to this on a hand-shake
basis or whatever your lawyer/mediator advises.

-Mark Bole

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 03-03-2006, 06:06 AM

Hi,

Are there any tax-free methods to separate an IRA as part of
a separation agreement (not filed in court) and before a
Divorce Decree is ordered? I would really be most
comfortable separating my retirement account within the
separation agreement and not have to keep (or manage) the
balance until the Divorce Decree (much) later.

By separating the account now, I think could avoid any
additional claims on the account, should the market change
decisively one way or the other. In all cases, the division
of these assets will be spelled out in the separation
agreement. Also, since I am buying out the equity in the
home, I could also use this to "sweeten" the pot (higher %
of retirement funds, less buy out cash) and lessen my
out-of-pocket expenses.

Thanks,
../Chu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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