Hello. I am recently divorced (clerk of court signed Absolute Divorce) and am trying to transfer part of my HSA account to my wife’s HSA account per the separation agreement (SA).
The SA is a valid signed and notarized agreement but the trustee is requiring a Court-Approved Separation Agreement.
My reading is that the signed and notarized SA is fully enforceable in court and the IRS does not specify that the SA has to be “court-approved”.
What are my options here?
Thanks.
You may need a special court order directing that the HSA be divided in half and half of it transferred to your ex-spouse.
This would be similar to dividing a retirement account where a special court order (qualified domestic relations order or domestic relations order) is required before the transfer can happen.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
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Great short article that is my second ‘timely’ exposure to the QDRO procedure, since my wife has filed for an ED hearing in January. I’ve already gotten the sample ED from this site and look forward to working on my reply and referencing all the relevant rules and options available to me. Thanks Anna!