Dear Quentin,
I perceive that, within the occasion of a divorce, a partner will not be entitled to cash inherited from the partner if these funds haven’t been commingled in a joint account. I’m in a scenario the place my spouse inherited some cash after we received married. But I believe he made an enormous mistake: he put it on his account.
For about 20 years – with out my data – he deposited his wage cash into the identical account that contained his inheritance. He now has Social Security, and every month your entire quantity is deposited into the identical account.
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I nonetheless work and now we have all the time filed joint tax returns. No tax is withheld from his Social Security earnings, so my tax refund every year is about 60% lower than it might be if our joint tax return didn’t embody Social Security earnings.
If we have been to divorce, would I be entitled to half of his separate account, on condition that he has combined joint earnings for 20 years with the inherited quantity? Am I entitled to half of her Social Security earnings, simply as she can be entitled to half of mine as soon as I begin receiving it?
Husband in Texas
Dear husband,
I’ve some excellent news… in your spouse.
Your spouse ought to deal with her inheritance appropriately, particularly contemplating that your marriage seems to have seen happier days and you’re contemplating a divorce. It seems you probably did simply that, as you adopted paper trails of the cash going out and in of the accounts. I can not blame you for this, however you are not sitting on a golden goose.
Money transferred from a joint marital checking account to a separate checking account containing your spouse’s inheritance doesn’t commingle your inheritance. Texas is one in every of 9 neighborhood property states, together with Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Washington and Wisconsin.
Money transferred from a checking account with separate marital property to a joint checking account is taken into account combined. Separate marital property may embody an inheritance, funds from sure private harm claims, cash earned earlier than the wedding, or property clearly bought with cash from the above-mentioned sources.
There are different methods an inheritance could possibly be combined, in response to the Hailey-Petty legislation agency, which has places of work in San Antonio and Austin, Texas. “If property funds are used to buy or put money into collectively owned property or used to learn each spouses, this will likely additionally result in the inheritance being thought of marital property.”
The legislation agency continues: “If the inheritance is used to considerably improve marital property – akin to financing a serious renovation of a collectively owned house – that portion of the inheritance could turn out to be marital property. Some states,” he provides, “present particular circumstances beneath which an inheritance could also be thought of marital property.”
Spousal advantages
An individual can not obtain spousal Social Security advantages till the partner personally applies for Social Security. The quantity the particular person receives will depend upon whether or not the partner started claiming at age 62, or whether or not that particular person waited till full retirement age or maxed out their advantages by ready till age of 70 years to request.
Just to be clear: If you declare spousal advantages of as much as 50% of your spouse’s Social Security, it will not have an effect on her advantages. If you obtain $1,500 and your spouse receives $5,000, you’ll be able to declare her file and get $2,500, however you’ll not obtain $4,000; you get the better of the 2 advantages. The particular person receiving the very best efficiency is not going to be affected.
If you wish to obtain spousal advantages after divorce, you have to be no less than 62 years previous and single, and you should have been married to your ex-wife for no less than 10 years. “You can declare advantages in your ex-spouse’s file even when she or he has not retired, so long as you have been divorced no less than two years earlier than making use of,” in response to the Social Security Administration.
If you determine to remain married, you’re entitled to obtain 50% of your spouse’s allowance, assuming she earns extra. If you’re the one who earns essentially the most, the identical goes in your spouse. It is an equal alternatives coverage. Since we do not say who earns extra, it is inconceivable to say who would (or will) in the end profit.
To be eligible for spousal advantages, “you have to be no less than 62 years of age or any age you probably have a baby beneath 16 in your care or who has a incapacity and is eligible for advantages in your partner’s file,” says the SSA. “If you select to obtain your partner’s advantages earlier than reaching full retirement age, your fee can be completely lowered.”
Ultimately, your spouse’s inheritance is as safe as the homes.
