What happens to my personal savings in a divorce?

Investments and savings will generally form part of your financial settlement on divorce or dissolution. Dividing them should be relatively straightforward if you can negotiate with each other. But you may need to value them and pay tax or charges if you sell or transfer them or cash them in.

How do I redeem a savings bond as a power of attorney?

The quickest way to redeem a savings bond through power of attorney is to take the bonds to the principal’s bank. Verify that the person who granted you power of attorney (also known as the principal) has notified the bank of the agreement.

How do I cash in savings bonds with my maiden name?

To cash your bond, sign it with your current name rather than your maiden name. The bank teller will then note on the bond paperwork your account number along with the date you opened the account. He will also make a note that your signature is a match, but your name has changed due to marriage.

Can a savings bond be reissued after a divorce?

In order to change the owner name on a savings bond without any change in ownership during a divorce, the bond would have to be reissued. This would require the owner of the bonds to sign both present and former names and complete the Treasury’s authorized reissue form, certifying the manner in which the change occurred.

What happens to a joint bond after a divorce?

If a divorce court stipulates that one of the parties will retain the property, the following will take place: Even if a court has ruled through a divorce that the property will be held by a single person, that person will still have to be able to prove to the bank that they are able to afford the payment.

How are savings bonds divided in a marriage?

If the savings bonds are not for their children or there were no children in the marriage, many couples choose to divide the savings among each other. However, there are tax consequences to the division of the bonds. Any tax implications need to be taken into account in the costs, when dividing the assets.

Can a joint bond be used to buy a property?

Sometimes a property requires the ‘money power’ of two salaries, whether it is to get a home you both need or as an investment. A joint bond may then be the only viable way of getting into the market. While it is possible for two people to have a bond issued jointly in their names,…

What to know about savings bonds during divorce?

There are different types of savings bonds that come in different monetary increments. Reissuing a bond or changing a name, ownership title, or beneficiary on a bond requires legal documentation. It’s important to understand bond maturation and the tax consequences of dividing savings bonds during a divorce.

How are spouses hide assets during a divorce?

Not only will he be hiding assets from the court, but he’ll also be irrevocably transferring ownership to his kids. Should he later pull money for a use that doesn’t benefit your children, then he’ll be stealing from them. Interest accumulated from Series EE savings bonds and municipal bonds don’t have to be reported on tax returns.

What happens to your investments in a divorce?

In general, when dividing investments in a divorce, couples may have options: One option would be to sell investments and divvy up the proceeds. This can have tax consequences.

When do individual savings bonds have to be reissued?

Bear in mind: We reissue EE and I bonds into an electronic format in TreasuryDirect, and individual savings bonds cannot be split (they must be reissued in full). We can process reissue requests received up until the month prior to the bond’s scheduled maturity (as shown on the front of the bond).