IRA & divorce

[InDebtInDC]

My friend is considering a divorce, and she's hesitant to contribute to her IRA because she thinks if she files for divorce her husband gets half of everything.

Is this true? Her husband has an IRA as well. I'm not sure how much he has, but I would like her to start contributing something to her own account considering how she's likely to retire within 10 years or so.

Thanks for any comments.

[marvholly]

As I recall IRA's are individually owned and have been since inception >30 years ago. I remember being a SAHM back then and while our house hold income qualified hubby & me to contribute it was a max that WE had to decide how to divide.

That said and done, a judge MIGHT take individual assets into consideration when deciding how to split joint assets (house) and/or debts.

What is her lawyer suggesting?

[FrugalIII]

I recently went through a divorce. My experience is that anything earned or purchased during the marriage is subject to division except inheritance. With me it was mutually agreed that she keeps hers and I keep mine. That way there was no court involvement. It could get ugly. Depends upon how you get along with your soon to be ex.

The rules vary quite a bit based on the state, the judge, and the individual circumstances.

Where would your friend put her money if she doesn't put it in an IRA? I would think if anything the IRA would be a safer place to put her money.

[InDebtInDC]

I think that everything is 50/50 based upon the judge's discretion. I just didn't know if there was some exemption for IRAs.