Legal Question in Family Law in Utah

Re: Splitting Retirement Accounts in Divorce

The assets you bring into a marriage, including IRA's, retirement accounts, and other property, are considered "premarital property" and as such are exempt from later property settlement issues in the event of divorce. However, to the extent that the assets increase in value during the marriage, and if both partners contribute to the asset either directly or indirectly, the increase may be subject to a later split. Two examples: (1) You own a house when you marry, and the house is worth $100,000. Both of you occupy and care for the house. In five years you divorce, your spouse may claim an interest in the increase in value of the house. (2) You own a rental property, which has a positive cash flow. You do all of the maintenance and work on the rental alone and using only the cash flow from the property. Later your spouse cannot claim an interest in the increased value. Retirement accounts related to employment are a little fuzzier. Generally a spouse can claim an interest in the increase in value, but there may be exceptions.

Also not that inheritances during a marriage do not become marital property, unless the inheritance is mingled with marital assets. (I.e., if you inherit $10,000 and place in joint checking account, it becomes marital property. But if kept in a separate account it does not.)