Knowing one's options concerning an inherited IRA in divorce | Lane & Lane, LLC
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Knowing one's options concerning an inherited IRA in divorce

For many individuals in New Jersey and elsewhere, maintaining a healthy financial future is an essential part of life. When facing a divorce, a person may wish to gain a better understanding of the steps to take to protect this area of life during legal proceedings. Those who are seeking a favorable outcome concerning the division of property might choose to pursue guidance on how an inherited IRA could play a role in negotiations.

In equitable distribution states, such as New Jersey, the division of marital assets must be fair, but it doesn't necessarily have to be equal. Furthermore, assets that retain their separate identity, such as an inherited IRA that is obtained prior to marriage, might not be included in the division of property. However, much like any other separate asset, if an inherited IRA is mixed with marital assets in any way, it could lose its separate identity.

Even if an inherited IRA retains its separate identity, those who possess a similar accounts may wish to know if they can use it to negotiate a more favorable outcome. In some cases, a person may be able to agree to provide the other party with funds from the account in exchange for other assets. When dividing investment accounts, it is vital to ensure the process is handled properly, as failing to take the necessary measures could bring about devastating tax penalties.

For those who wish to safeguard their finances during divorce, fully understanding all the available options can be essential. For guidance in understanding the difference between separate and marital property, and advice on one's options concerning an inherited IRA, a person could benefit from consulting with a family law attorney early on. An attorney can provide a client in New Jersey with advice in making informed decisions concerning his or her financial future during divorce proceedings.

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