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Property Split

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Fly71

Junior Member
What is the name of your state? CA

My husband and I are divorcing. We jointly owned a subchapter S business for 3 years in CA. I kept it afloat with my money from an IRA, most of which I earned prior to our marriage, and it was earned in Colorado.

Our largest asset now is our house and we have significant equity in it - about $500,00. Can I demand that he pay me back for half of my IRA that was lost as a result of this business? I had also received a pain and injury award in the amount of $75,000 while living in CA. He day traded about $10,000 of this away without my permission. Some of the rest of it also went in the business. Can I ask for any reimbursement of any of these funds?
 


Ohiogal

Ohiogal

Queen Bee
Fly71 said:
What is the name of your state? CA

My husband and I are divorcing. We jointly owned a subchapter S business for 3 years in CA. I kept it afloat with my money from an IRA, most of which I earned prior to our marriage, and it was earned in Colorado.

Our largest asset now is our house and we have significant equity in it - about $500,00. Can I demand that he pay me back for half of my IRA that was lost as a result of this business? I had also received a pain and injury award in the amount of $75,000 while living in CA. He day traded about $10,000 of this away without my permission. Some of the rest of it also went in the business. Can I ask for any reimbursement of any of these funds?
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You jointly owned the business. You both therefore lost money on it.You individually put in money from your IRA. Now you want him to pay you for half the losses? That is a marital loss and marital debt. You made the IRA funds prior to marriage marital property by investing them in the business that you owned jointly. How long ago did he day trade it away? While that may have been your award did you put it in a marital checking account -- joint checking? If so it became marital funds.
 
LdiJ

LdiJ

Senior Member
Ohiogal said:
You jointly owned the business. You both therefore lost money on it.You individually put in money from your IRA. Now you want him to pay you for half the losses? That is a marital loss and marital debt. You made the IRA funds prior to marriage marital property by investing them in the business that you owned jointly. How long ago did he day trade it away? While that may have been your award did you put it in a marital checking account -- joint checking? If so it became marital funds.
Click to expand...
I agree with this 100%. HOWEVER...there are some tax issues that may result in your favor depending on when the S-corp closed...unless they have already been utilized through joint returns. Consult a local tax professional.
 
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