${site.data.firmName}${SEMFirmNameAlt} Main Menu
Call Today: 855-805-0595

IRAs are marital assets with special divorce rules

21930623_S.jpgAt the end of a marriage, an individual may find the need to divide the shared property. What and how the marital assets will be divided are decided during the divorce process. Some assets, like IRAs, have special tax rules that apply. Individuals in Saint Charles, Missouri, who want to separate an IRA during divorce should heed the rules to avoid a tax penalty. 

The transfer of an individual's interest in an IRA to a former spouse under a divorce or separation instrument isn't taxable, per the IRS. While some plans, known as qualified plans, require a Qualified Domestic Relations Order to transfer the funds, an IRA does not require a QDRO. Funds can be transferred by the divorce decree by transferring the sum into a former spouse's IRA account or retitling the account to the former spouse. 

To qualify for the tax-free exchange, a legal divorce decree or separation agreement must exist. Informal arrangements do not qualify. Distributions taken from the IRA and awarded as cash do not qualify either, and they will be treated as a taxable event. Any distributions taken that do not qualify as a special exception will also be considered for an early distribution penalty. 

The division of marital assets, especially for those undergoing a high asset divorce, can become complicated. Individuals in Saint Charles, Missouri, considering a divorce may wish for some extra help to avoid tax penalties. An experienced and knowledgeable family law attorney may be able to offer useful guidance to inquisitive people. 

No Comments

Leave a comment
Comment Information

Contact Our Team To Get Help Now

Tell us about your case and we’ll get back to you promptly.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Stange Logo

Stange Law Firm, PC
2268 Bluestone Drive
St. Charles, Missouri 63303

Toll Free: 855-805-0595
Fax: 314-963-9191
St. Louis Law Office Map

DHQ | Divorce Headquarters Divorce
Headquarters ® App Download The App
Questions? Live Chat Pay Your Bill Online
States of Service

Other Office Locations

  • Saint Louis County: 120 S. Central Ave., Suite 450, Clayton, MO 63105: Clayton Office
  • West County: 16024 Manchester Rd., Suite 103, Ellisville, MO 63011: Ellisville Office
  • Jackson County: 256 NE Tudor Rd., Lee's Summit, Missouri 64086: Lee's Summit Office
  • Jefferson County: 16 Municipal Drive, Suite C, Arnold, MO 63010: Arnold Office
  • St. Charles County: 2268 Bluestone Drive, St. Charles, MO 63303: St. Charles Office
  • Franklin County: 5 S. Oak St. Union, MO 63084: Union Office
  • Lincoln County: 20 Centerline Drive, Troy, Missouri 63379: Troy Office
  • Boone County: 1506 Chapel Hill Rd., Suite H, Columbia, MO 65203: Columbia Office
  • Greene County: 901 E. St. Louis, Suite 404, Springfield, Missouri 65806 Springfield, MO Office
  • St. Clair County: 115 Lincoln Place Ct., Ste. 101, Belleville, IL 62221: Belleville Office
  • Madison County: 5 Club Centre Ct., Suite A, Edwardsville, Illinois 62025: Edwardsville Office
  • Sangamon County: 400 S. 9th St., Suite 100, Springfield, IL 62701: Springfield Office
  • McLean County: 1012 Ekstam Drive, Suite 4, Bloomington, IL 61704: Bloomington Office
  • Johnson County: 7300 West 110th Street, Suite 560, Overland Park, KS 62210: Overland Park Office
  • Sedgwick County: 2024 N. Woodlawn Street, Suite 407, Wichita, Kansas 67208: Wichita Office
  • Monroe County: 116 W. Mill St., Waterloo, IL 62298 (by appt. only): Waterloo Office
  • St. Louis City: 100 S. 4th St., #549, St. Louis, MO 63102 (by appt. only): St. Louis Office
  • Jackson County: 2300 Main St., #948, Kansas City, MO 64108 (by appt. only): Kansas City Office

The choice of a lawyer is an important decision & should not be based solely upon advertisements. See additional disclaimers here.