An IRA is marital property in a Georgia divorce only to the extent the marriage produced it, through contributions made during the marriage or growth that came from either spouse’s efforts.
Contributions Made During the Marriage
In Newman v. Patton, 286 Ga. 805 (2010), the wife had opened an IRA before the marriage and contributed only $500 to it during the marriage, yet the trial court awarded the husband 40 percent of the account. The Georgia Supreme Court reversed. As the wife conceded, the husband was entitled to a portion of the $500 and to “any appreciation in value thereto that is a direct result of the parties’ labors during the marriage.”
Proving Which Account Is Which
Which account is marital can be a question of fact. In Curran v. Scharpf, 290 Ga. 780 (2012), a jury found that an IRA in the husband’s name was his separate property. The evidence showed he may have had several retirement accounts, “with some ambiguity existing as to which ones were marital property,” and the Supreme Court affirmed because at least some evidence supported the verdict.
The Beneficiary Designation
A divorce agreement can also end a former spouse’s claim as beneficiary. In Young v. Stump, 294 Ga. App. 351 (2008), the agreement gave the husband every retirement account titled in his name, including IRAs, and said the wife “shall make no claim to” them. He died about six years later without removing her as his IRA’s beneficiary, and the fund transferred the $34,838.29 in it to her. The Court of Appeals held that the agreement waived her beneficiary designation and affirmed summary judgment for his estate’s executrix. It contrasted a federal case in which a general release that did not expressly include the IRA left a former wife’s designation in place.
Our post on retirement terms in a Georgia divorce agreement applies the same rule to employer plans.
Contact Us
This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!