Dividing an inherited IRA during divorce

Pennsylvania residents who have gone through a divorce know the challenges associated with dividing property and assets. A relatively new phenomenon has added a wrinkle. It is that of dividing inherited individual retirement accounts. In truth, no one is sure if an inherited IRA can be split during a divorce. In some locations, however, this is what is already happening.

The year 2019 will bring about new alimony rules in regard to taxes. These alimony rules could mean that IRAs have a larger impact on divorce settlements. Traditional IRAs have often found themselves used as a bargaining chip during a divorce. With the idea of splitting inherited IRAs, the situation becomes more complicated.

Part of the complication comes from the fact that as of this date neither the tax code nor tax regulations consider the option of splitting an inherited IRA during a divorce. So there’s nothing official written about this. There’s nothing from the IRS saying that it can be done, nor are there any private letter rulings or court cases saying that it cannot be done.

That being said, a number of courts are allowing inherited IRAs to be divided during a divorce. When an IRA is divided, it keeps its inherited status. Additionally, the required minimum distribution schedule stays the same. The name on the IRA account is the name of the individual who inherited it. The only difference is that their ex-spouse’s name is added to the account as a new beneficiary.

Many are turning to their inherited IRAs in circumstances where they have inherited a large retirement account and want to use part of it to satisfy the property split agreed on during the divorce. It is important that both parties agree that they are going to be responsible for any future RMDs and that their responsibility is based on the percentage of the inherited IRA they keep.

A family law attorney will advise clients who are considering splitting an inherited IRA on things like what to do with shared accounts, how to divide property and how to determine the value of their assets. Legal counsel can also address other issues that may arise during the divorce process.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Privacy Policy

This privacy policy discloses the privacy practices for www.bononiandbononi.com. This privacy policy applies solely to information collected by this web site. It will notify you of the following:

  1. What personally identifiable information is collected from you through the web site, how it is used and with whom it may be shared.
  2. What choices are available to you regarding the use of your data.
  3. The security procedures in place to protect the misuse of your information.
  4. How you can correct any inaccuracies in the information.

Information Collection, Use, and Sharing 
We are the sole owners of the information collected on this site. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We will not sell or rent this information to anyone.

We will use your information to respond to you, regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary.

Unless you ask us not to, we may contact you via email in the future to tell you about specials, new products or services, or changes to this privacy policy.

Your Access to and Control Over Information 
You may opt out of any future contacts from us at any time. You can do the following at any time by contacting us via the email address or phone number given on our website:

  • See what data we have about you, if any.
  • Change/correct any data we have about you.
  • Have us delete any data we have about you.
  • Express any concern you have about our use of your data.

We take precautions to protect your information. When you submit sensitive information via the website, your information is protected both online and offline.

We also protect your information offline. Only employees who need the information to perform a specific job (for example, billing or customer service) are granted access to personally identifiable information. The computers/servers in which we store personally identifiable information are kept in a secure environment.


Our Privacy Policy may change from time to time and all updates will be posted on this page.

If you feel that we are not abiding by this privacy policy, you should contact us immediately via telephone at 412-832-2499