“I don’t think I divorced, but I never know what could happen tomorrow.” (Photo themes are models.) – Getty Images/Stockphoto
My husband and I live in Arizona, which, in my understanding, is a community ownership state. We moved here eight years ago from Illinois. I’m going to get money from the late relative’s confidence. We want to invest money and play catch up when you save a pension/funding.
I don’t think I divorced, but I never know what could happen tomorrow. I love my husband and do not intend to divorce, but is it unfortunate would I have to do what I have to do when investing that money to make sure I am entitled to every last penny?
The wife
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In Arizona, as in many states, the IRA is considered community property, and the employer is supported by 401 (K) as a separate property. – Marketwatch illustration
Quoting George Bernard Shaw: “You can never say, sir, you can never say.”
In Arizona, there is indeed a community and ownership state, which means that everything you acquire before marriage is a separate property, as is the inheritance and gifts acquired during the marriage. And you are right again: it doesn’t hurt to have a fu money – like “financially unconcied” money. (What do you think was “fu”?) And you are on the sign for the third time: you have to keep this money separately and not delve into your husband’s finances. For this reason, you should be careful to inherit inheritance with IRA and / or 401 (K).
Alternatively, you can invest the inheritance you expect to get in a separate mediation account only in your name. If you feel sure about US stocks, you could also invest some of your inheritance in an investment fund or stock exchange fund that follows the stock market, S&P 500 SPX or other diversified index (possibly Vanguard Total ETF VTI). Remember the word d: diversification. You can mix your ETF selection and continue to expand your horizons. You can read more about diversity here.
In terms of your retirement funds? “All marriage assets acquired during the marriage are considered to be co -owned by both of your contributions and an increase in investment of $ 40,000 would be considered as community assets.”
For this reason, you should be careful about putting money in your pension accounts. This is where your legacy can be removed if you did, as it means George Bernard Shaw quote, stand out. In Arizona, as in many states, the IRA is considered to be community property and contributions made by the employer’s 401 (K) before marriage as a separate property, but the accumulated community assets are valued during the marriage. When couples divorce, 401 (K) accounts are usually divided through a qualified internal relationship or QDRO.
Related: “I divorced many heartaches”: Should I offer my husband to keep my $ 200,000 in 401 (K) to take our $ 360,000 house?
Not so Ira. “After dividing the property, the adoption spouse can choose to pick up money as a distribution or transfer it to an account of their pension plan like IRA,” says Merrill Edge, an investment and warning service. “A typical additional early retirement fee does not apply to distributions performed by QDRO, but the host spouse would still owe federal and, if applied, state income taxes.”
The rules relating to 401 (K) S establish the Safety Act of Pension Income Employee Revenue, which establishes a private sector retirement and health plans standards. Here’s what the US Department of Labor says on the subject: “In many 401 (K) plans and other defined control plans, the plan is written in such a way that different protective measures apply to survivors.
But here’s someone who plans to divorce: “If you want to choose another beneficiary, your spouse must agree to sign a refusal testified by a notary or a plan representative,” the agency notes. “If you were single, when you joined the plan and later married, it is important to inform your employer and / or the plan administrator and change your status according to plan.” So be careful where you submit a legacy.
“With community assets, a spouse could demand interest in the community’s property, even if it was organized on behalf of another spouse,” says George Bearup, Greenleaf Trust senior advisor to legal trust. “It would be 50 percent of interest, though he is considered the only name of another spouse, and although the other spouse contributed 100 % at the time of his marriage to IRA.
I wish for many years a happy investment and marriage.
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After my father’s death, my sister transferred the property to her name.
