Can an Ex-Wife Put a Lien on an IRA of the Deceased?
Placing a lien on a retirement account of a dead ex-spouse isn't usually necessary for the surviving ex-spouse to claim a portion of the account balance. As long as the surviving ex-spouse has a legal right to the account through her marriage to the decedent or through a divorce settlement, the court will listen to her request for access to the money.
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Retirement Accounts in Divorce
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The court must split a couple's retirement account, including an IRA, when a marriage ends in divorce, in accordance with the state's divorce laws. According to Legal Zoom, the account can be divided in two ways: a valuation buyout in which one spouse pays the other a sum equal to half of the fund's present worth or a division of the retirement account into two separate accounts. The court will issue a Qualified Domestic Relations Order to compel the firm holding the IRA to divide the account when the spouses select this option. For either choice, the decision is final. A spouse won't be able to go back later in an attempt to claim the other half the IRA, even if the other spouse is dead.
Death During Divorce
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The death of a spouse during or immediately following a divorce settlement can complicate the ongoing separation of finances, including retirement accounts. An ex-spouse might file an appeal with the probate court to ensure the decedent's estate upholds any settlement order handed down by the divorce court having jurisdiction over the marriage. While, the probate court won't place a lien on the decedent's retirement accounts, the court may impose a hold so the trustee in charge of the decedent's will can go over the divorce settlement and divide the accounts in accordance with the court's previous decision.
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Hiding Financial Assets
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State divorce laws consider an IRA an asset in divorce on par with a house, automobile or bank account. Hiding this type of asset to prevent a spouse from obtaining a portion of the account in divorce can result in the amending of the settlement agreement after the court finalizes the divorce. An ex-spouse, upon discovering that a recently deceased former spouse hid a retirement account from her, could petition the court to reopen the divorce settlement so she can obtain a share of the account as allowed by law.
Waving Financial Benefits
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During a divorce settlement, a spouse might choose to wave interest in a retirement account, including an IRA, if her share of the account is extremely small. In doing so, the spouse loses the legal ability to file a petition with the court to claim money in the account at a later date. Regardless of how large the IRA gets, the ex-spouse has no right to the funds. An exception occurs if the deceased spouse's will document names the surviving ex-spouse as a beneficiary on the IRA.
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