IRA and divorce
I have a client that lives in Texas, which is a community property state. My client’s company just closed it’s doors. He transferred his 401K to his own IRA, he wants to know if any of that IRA is protected from a divorce? And if not would his exwife be able to roll over half of the husband’s IRA to her own IRA? Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2013-02-18 22:35
Neither 401k or IRA accounts are protected from spousal settlements when a court order is obtained for a transfer of any portion of the account to the ex spouse as part of a divorce or separate maintenance settlement. Sometimes an agreement can be worked out to leave the IRA alone or if both parties agree, the entire IRA could be transferred. Every individual asset does not have to be split exactly 50-50, but each spouse is generally entitled to 50% of the total community property. Whatever portion the decree indicates must be transferred, the ex wife can treat as her own IRA. The court order must be submitted to the IRA custodian.