Divorce Decree Specifications
How specific does a divorce decree have to be? Pub. 590 just specifies a transfer be transacted due to a “divorce or separate maintenance decree or a written document related to such a decree”. It doesn’t go into any detail about what that decree must state to be acceptable.
For example, would a vague decree stating that a spouse is entitled to 50% of the other spouse’s assets be acceptable, or does the decree specifically have to state 50% of ABC IRA?
I can’t find the clarification anywhere!
Permalink Submitted by Alan Spross on Mon, 2011-11-14 23:19
I think the IRA custodian would have to make that call, and the last thing they want is to become involved in litigation. While there is no question that an IRA is an asset of the IRA owner, the custodian might require an amendment to specifically include the specific IRA account or something to the effect of “all IRA accounts” owned by the spouse.
I know of no definition in the tax code relating to specificity here. Nothing in 408(a)(6) or Sec 71.