Guest VandenBrul Posted June 21, 2002 Posted June 21, 2002 One of my neighbors asked what would happen if he opened IRA's for his teenage children who work for him in a family business should they marry and later divorce? Should they have a pre-nuptial? What about community property states? Dick
papogi Posted June 21, 2002 Posted June 21, 2002 IRA's are always individually owned. If they divorce, they keep the IRA's in their name.
Steve72 Posted June 21, 2002 Posted June 21, 2002 Small addition: An IRA can be divided by a divorce or separation instrument. The IRA will not serve as a "shelter" from the divorce.
papogi Posted June 21, 2002 Posted June 21, 2002 Interesting. I was not aware of that, but I now see it in the regs. Would a pre-nup really provide a bullet-proof protection?
mbozek Posted June 22, 2002 Posted June 22, 2002 A person can waive marital or support rights to an IRA on account of separation or divorce by signing of a prenuptual agreement valid under state law in which such rights are waived. These rights can also be waived after the parties are married. In a community property state each party has the right to 50% of all property acquired during the marriage. mjb
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