Wisdom to Wealth: Monday, May 10
John Halterman: Did you receive an inheritance and were wondering, if you get a divorce, is that money protected from your spouse? Well, I gotta tell you, it’s a yes and no answer. So, let’s say you got money and you have it in an inherited IRA. Well, that money is considered separate assets from your marriage. And so, that money is absolutely protected. But let’s say you receive some non-qualified money, which means it’s taxable to you. And you decide, you know what, I’m going to use that money and I’m going to buy a house for our family. And I’m going to put both my name and my husband’s name on it. Well, if you do that, then it becomes a marital asset and so, if you do get a divorce, it’s no longer protected the same way as if you had it as a separate asset. And so, you just gotta remember, how you handle it is going to determine how those assets are treated at the time of divorce. For more answers, call or visit our website today.
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