Savings Bonds in divorce
If you have Savings Bonds in husband & wife names but they are separated who can cash in the Bonds? How to know when’s the best time to cash them in
Terry Says
If the bonds were purchased using the “with” designation in both names (and not Payable on Death), I’m guessing that the one that has the TreasuryDirect password and gets there first, will be the one to cash them in!!
If you’re on good terms, you could cash them in without penalty if you have held them for 5 years. You could agree to split the proceeds evenly, and if you’re still filing a joint return and married at the time, the tax would be split evenly.
Otherwise, if you do get divorced, this is property that should be clearly defined in ownershp as part of the divorce agreement.
