Once your divorce is finalized, you can begin the process of transferring assets between your ex-spouse, as designated in your divorce decree.
In order for us to complete a transfer from one Betterment account to another, we will need:
Original Certified Copy of Your Entire Divorce Decree
It should clearly identify the legal terms of your divorce, and you should also include all supplemental documentation ordering the transfer of your assets.
Supplemental documentation may include a QDRO, marital settlement agreement, and property settlement agreement. If you have any of these documents relating to your divorce, they must be sent to us along with your decree.
Note that all certifications of your court documentation must be dated within 60 days—or 120 days if you are a New York resident—of the day we receive it at Betterment.
A Signed Letter of Instruction
This letter must clearly state:
- The name of the ex-spouse to whom the assets are being transferred.
- The Betterment account number from which the assets are being transferred. Your account numbers can be found in your account.
- The Betterment account number to which the assets are being transferred.
- That you approve the transfer of a specific dollar amount or percentage. Please note, if the letter specifies a percentage of the account must be transferred and does not include a percentage as of a certain date, we will use the current balance of the account on the day the paperwork is approved by the Betterment team and deemed to be in good order.
- The signature of the owner of the original account from which the assets must be transferred.
- Either a notary or a medallion signature guarantee—see below. If the letter isn’t notarized or doesn’t have a medallion signature guarantee (see below for how to determine which one is required), we will not be able to accept it.
If the assets being transferred are over $100,000, the letter of instruction needs to contain a medallion signature guarantee. A medallion signature guarantee can be obtained from an officer of a bank, a trust company, or a member firm of a U.S. stock exchange. A notary public cannot provide a signature guarantee. It must also show the name of the institution issuing the guarantee.
If the assets being transferred are under $100,000, the letter of instruction will need to be notarized.
A Signed Letter of Acceptance
This letter must clearly state:
- The name of the ex-spouse to whom the assets are being transferred.
- The Betterment account number from which the assets are being transferred.
- The Betterment account number to which the assets are being transferred.
- That they approve the transfer of a specific dollar amount or percentage. If a percentage is specified, the valuation date for calculation purposes will be the day that our team is reviewing and approving the documentation, if no date of valuation is provided.
- It must be signed by the party receiving the assets.
- It should also match the details included in the Letter of Instruction.
The receiving party will also need to open a matching Betterment account type if they have not already done so. For example, if funds need to be transferred from a Traditional IRA, the spouse receiving those funds will need to open a Traditional IRA in their own name. If funds in a taxable account need to be transferred, the spouse receiving those funds will need to have a taxable account open, with a matching allocation as well, in order to minimize any tax impact of turning back on rebalancing after the transfer.
All documentation needs to be physically mailed to:
Betterment
c/o Transfer Department
8 W 24th Street
6th Floor
New York, NY 10010
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