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GREGK · May 3, 2011, 02:39 PM

I inherited moneys in 2010 and have keeped it invested in my name only. Part of it was an IRA that I reported on my joint tax return and paid those taxes from my own money. If I was to get divorced does my husband have claim to my inherited moneys?

ebaines · May 3, 2011, 05:03 PM

In a divorce everything is negotiable (just ask Frank McCourt) - but in general, whatever each party brings into the marriage is usually considered to be their's at the split. This includes inheritances - if you inherit something while married in general you take it with you when you divorce. However - the opposing side may argue that they should have access to your inheritance if you can't come up with other assets that should be split 50:50. That's why people hire lawyers for divorces.

GREGK · May 3, 2011, 07:32 PM

Thanks for answering. It was also my understanding that if the inherited moneys were not co-mingled the spouse could not take claim to it. I would image that it also depends on the state you live?

ebaines · May 4, 2011, 05:38 AM

Originally Posted by GREGK

I would image that it also depends on the state you live?

Even in community property states the assets you inherit or that are gifted to you while married are considered separate property. Other assets acquired during the marriage are generally considered to be joint property (absent any clear evidence to the contrary). Kansas is not a community property state.

Since your original question was about an IRA, and IRAs are held in your individual name only (not a joint acount), it should be quite easy to document that the account is all yours. The complication is if you funded part of this IRA using joint money - in that case you would need to have good records of how much was funded by you (from your inheritance or other separate account) versus how much came from co-mingled sources.

You say you "paid taxes" on your IRA - what taxes? Are you referring to taxes on a withdrawal you made from the account?

GREGK · May 5, 2011, 11:31 AM

The IRA at death went to the trust instead of it going into an inherited IRA so had to pay taxes on the IRA amount as income for 2010. I then paid those taxes from the my inherited moneys so that spouse was not out of pocket for the taxes.