Has the settlement been finalized? (Have both parties signed it and has it been recorded by the court?)
What state are you in?
In California, a QDRO is needed to divide a pension but not an IRA. Each QDRO costs a decent chunk of money in California and has its own filing requirements with the court, both before and after the divorce is finalized.
I think you're better off giving away pre-tax dollars from your IRA than post-tax cash. Is it specified in the divorce decree, whether you need to give pre- or post-tax dollars?
I believe the IRA institution will want to see specific language in the divorce settlement in order to move money from your IRA to an IRA for your ex, ie, "Respondent shall transfer $50,000 from Respondent's Chase IRA to Petitioner." I am not an attorney. If I were you, I would call your IRA institution to ask them what language they need to see in the divorce decree, and coordinate that with your attorney, if that action is permitted by your divorce settlement/divorce decree. It's not clear to me where you are in the process.
Attorneys rarely are also financial planners, and they may not understand the nuances of splitting pre- and post-tax assets equally in a divorce. Neither attorney in my divorce understood it; they simply watched my ex-spouse and I work it out from a spreadsheet, which resulted in a pre-tax transfer of money and a post-tax transfer of money specifically stated in the divorce decree.
What state are you in?
In California, a QDRO is needed to divide a pension but not an IRA. Each QDRO costs a decent chunk of money in California and has its own filing requirements with the court, both before and after the divorce is finalized.
I think you're better off giving away pre-tax dollars from your IRA than post-tax cash. Is it specified in the divorce decree, whether you need to give pre- or post-tax dollars?
I believe the IRA institution will want to see specific language in the divorce settlement in order to move money from your IRA to an IRA for your ex, ie, "Respondent shall transfer $50,000 from Respondent's Chase IRA to Petitioner." I am not an attorney. If I were you, I would call your IRA institution to ask them what language they need to see in the divorce decree, and coordinate that with your attorney, if that action is permitted by your divorce settlement/divorce decree. It's not clear to me where you are in the process.
Attorneys rarely are also financial planners, and they may not understand the nuances of splitting pre- and post-tax assets equally in a divorce. Neither attorney in my divorce understood it; they simply watched my ex-spouse and I work it out from a spreadsheet, which resulted in a pre-tax transfer of money and a post-tax transfer of money specifically stated in the divorce decree.
Statistics: Posted by LilyFleur — Tue Mar 12, 2024 6:29 pm — Replies 8 — Views 285