FINANCIAL ISSUES - MARITAL PROPERTY V. SEPARATE PROPERTY
I have been married almost 3 years and am now getting a divorce. In terms of Roth IRA contributions and marital vs. separate property: Are all IRA contributions considered marital property regardless of who put the money in the account as long as it is in one of the spouse's names? My wife's parents have contributed regularly to her account and I want to see if this money is considered a marital asset. Thank you.
The nature of the account is not controlling. It is the source of the funds in the account that is important. If the funds were earned by either party during the course of the marriage, the funds would be considered marital property, and generally divided 50-50. In the case that you presented, the funds were not earned by either party, but were a gift from your spouse's parents, and a gift such as that, if held in an individual's account, is not considered marital property; therefore, you have no interest in the amount which her parents have contributed.
Leonard M. Weiner, Esq./Divorce Solutions