In his divorce proceeding, debtor was awarded one-half the value of his ex-wife’s retirement accounts. Debtor took no action to obtain title or possession to the accounts. However, debtor claimed an exemption for the accounts as retirement funds; the bankruptcy court disallowed the exception.
Where debtor’s interest in retirement accounts merely resulted from a property settlement, funds in the accounts were not retirement funds exempt under federal law from bankruptcy proceeding, as the exemption was limited to the individual who created and contributed funds into the accounts.
Judgment is affirmed.
In re: Lerbakken (MLW No. 72210/Case No 18-6018 – 5 pages) (U.S. Court of Appeals, 8th Circuit, Shodeen, J.) Appealed from U.S. Bankruptcy Court, District of Minnesota