FAQs

Question: How can I calculate the separate property portion of an IRA?

Answer: If you have IRA statements as of the date of the marriage, the separate property portion of an IRA typically is the value of the IRA at the date of the marriage.

That is, typically, both contributions that are made to the IRA during the marriage and all growth that occurs in the IRA during the marriage are treated as marital property.(*)

The software can subtract the value at the date of marriage from the current value to calculate the separate property portion.

Here is how to have the software do that subtraction.

1. On the "more info" screen of the IRA, click the link labeled "Value, division, and separate property...."

2. Scroll down a bit and you will see the section where you enter the separate property.

3. In that section, you will see a link to click to have the software calculate the separate property amount. Click that link and you will be taken to a screen where you can enter the relevant dollar amounts.

If you do not have a statement of the value of the IRA on the date of the marriage, you may estimate the separate property portion as the current value of the IRA multiplied by a coverture fraction. The coverture fraction would be calculated as: Number of days during the marriage / Number of days the IRA has been in existence. You would then enter that estimate directly as the separate property amount.

(*) In the unlikely event that no contributions are made to the IRA after the marriage, and the IRA is treated by the parties as separate property, then growth in the IRA during the marriage may be treated as separate property.

The treatment of growth in the IRA as marital or separate property is a matter of state law, so you should always consult the law in your state.