Spending during marriage

[firstson]

Husband and wife had each one separate IRA accounts.
One spouse had spent (alone) the funds entirely of own account.
What would be the steps that the other spouse needs to take prior to
a (possible) divorce to protect own account?

 

[LdiJ]

Husband and wife had each one separate IRA accounts.
One spouse had spent (alone) the funds entirely of own account.
What would be the steps that the other spouse needs to take prior to
a (possible) divorce to protect own account?

I don't think that there is any way to protect it. If any of the funds in the account are premarital, then that portion could be protected.

 

[HighwayMan]

You ignored the question about what state this is.

 

[Just Blue]

Husband and wife had each one separate IRA accounts.
One spouse had spent (alone) the funds entirely of own account.
What would be the steps that the other spouse needs to take prior to
a (possible) divorce to protect own account?

What State? Who are you in this situation?

 

[not2cleverRed]

Husband and wife had each one separate IRA accounts.
One spouse had spent (alone) the funds entirely of own account.
What would be the steps that the other spouse needs to take prior to
a (possible) divorce to protect own account?

In addition to what state, and when the principal was added to the IRA, it would also depend on what that money was spent upon.

1) As LdiJ pointed out, if premarital contributions to the IRA are separate, not marital assets. If all the contributions to an IRA are premarital, then it is already "protected". Contributions made to the IRA during the marriage, and the reinvested dividends are (usually) marital assets, regardless of whose name is on it.

2) If the funds were spent on normal household expenses, then there is no reason why they should be penalized in a divorce.

3) If the funds were spent on things that one could reasonably argue that they shouldn't - a sports car for their lover, an extravagant gambling vacay in Mont Carlo (without the spouse, telling the spouse that they were taking care of an aged relative) - well, in such a case, it can be said that they wastefully dissipated, and this should be taken into account in determining a division of the assets.

But yeah, it'd be nice to know the state.

 

[firstson]

You ignored the question about what state this is.

NY
Thank you

 

[firstson]

In addition to what state, and when the principal was added to the IRA, it would also depend on what that money was spent upon.

1) As LdiJ pointed out, if premarital contributions to the IRA are separate, not marital assets. If all the contributions to an IRA are premarital, then it is already "protected". Contributions made to the IRA during the marriage, and the reinvested dividends are (usually) marital assets, regardless of whose name is on it.

2) If the funds were spent on normal household expenses, then there is no reason why they should be penalized in a divorce.

3) If the funds were spent on things that one could reasonably argue that they shouldn't - a sports car for their lover, an extravagant gambling vacay in Mont Carlo (without the spouse, telling the spouse that they were taking care of an aged relative) - well, in such a case, it can be said that they wastefully dissipated, and this should be taken into account in determining a division of the assets.

But yeah, it'd be nice to know the state.

NY
Thank you

 

[Just Blue]

NY
Thank you

Who are you in this situation?