Splitting the Assets
Warren asks if a spouse is entitled to IRA investments in the event of a divorce.
QUESTION: Warren on Facebook asks if a spouse is entitled to IRA investments in the event of a divorce.
ANSWER: It depends on the state you’re in. Usually, it is negotiated as part of the divorce settlement that she has her retirement, you have your retirement, you add them up, and you split the total. For instance, a friend of mine went through a divorce the other day. The husband had $200,000 in a 401(k). She had about $60,000, so that’s $260,000, so there’s $130,000 each the way they looked at it in the divorce mediation/settlement. They split it up.
Whether they have technical access or not will vary from state to state, but when you start negotiating, all things are on the table. When you’re trying to get through that divorce stuff, you turn a marriage into a business transaction.