Law Offices of David T. Garnes, LLC

Schedule Your Free Consultation

(856)324-4593 | (267)838-9713

contact Menu

Inherited IRAs may be a possible option for property division

As the time for certain aspects of the new tax law to go into effect approaches, new financial arrangements for divorce are being considered in New Jersey. Since the federal tax law regarding alimony is changing, people navigating divorce proceedings are in search of alternative property division options. One such arrangement involves IRAs. A question was recently posed as to whether it is possible to split an inherited IRA.

IRAs themselves have played a part in divorce for some time now. Inherited IRAs are being looked at as a possible gap closer in light of the new alimony law. With the loss of the alimony tax advantage, the fear among some people is that alimony awards will shrink. Inherited IRAs provide a way to fill that gap. Neither the status nor the distribution schedule of the inherited account would change, only the beneficiary's name would be changed.

An instance where this might be a good option would be if a spouse inherited a large IRA and wanted to use all or part of it to satisfy a property split in a divorce settlement. There is some question as to whether an inherited IRA is considered marital property. However, the owner of the property has the right to allocate the property. If funds are withdrawn from the inherited IRA, there may be tax implications to be considered.

A person in New Jersey who is considering divorce and is concerned about the implications on property division of the new tax law may want to seek the advice and counsel of an experienced family law attorney. A knowledgeable lawyer can look at the overall financial situation of his or her client. The lawyer can then advise one on what are the best options to pursue and help to achieve a favorable result.

No Comments

Leave a comment
Comment Information
  • Excellent Attorney
    ratings

    “I have used David Garnes on many occasions for multiple matters. He has assisted me for about 4 years and I will continue to seek his counsel as the need arise. His office is both very professional and attentive.”

    Matthew R. 2/12/15
  • I highly recommend Mr. Garnes
    ratings

    “Mr. Garnes was such an amazing attorney, and he has an amazing staff! Mr. Garnes was truly there for me during my time of need. He truly gets the job done, and was available for me on both nights and weekends! ”

    B B. 2/12/15
  • Awesome
    ratings

    “ Mr. Garnes was just great. He help change my life for the better. Thanks again”

    B B. 2/12/15
Email Us For a Response

How can we help you?

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

Privacy Policy

map-direction

Cherry Hill Office
3 Executive Campus
2370 Marlton Pike West
Suite 255
Cherry Hill, NJ 08002

Phone: 856-324-4593
Fax: 856-282-1159
Map & Directions

Philadelphia Office
One Liberty Place
1650 Market Street
36th Floor
Philadelphia, PA 19103

Phone: 267-838-9713
Philadelphia Law Office Map

map-direction
Review Us
map map