WORCESTER 508-471-3018
Metro West 508-709-0024

HSAs require attention during divorce proceeding, too

After building a life together, two spouses may naturally find it difficult to split everything down the middle. This is true for assets such as the family home, and it is also true for monetary assets, such as the health savings account, or HSA. The HSA may be particularly confusing to split during a divorce proceeding in Massachusetts, simply because it has been in existence for only 13 years or so.

An HSA is an account to which the account owner can make contributions that are considered tax deductible. Funds that the owner draws from the account must be used for qualified health care expenses to avoid a 20 percent penalty. Currently, the maximum contribution for an HSA is $3,400 for a single adult and more than $6,700 for a family.

Many contributors to HSAs want their accounts to grow so that they can tap into them in the future, rather than using them for immediate medical costs. As a result, some accounts are worth more than $100,000. When it comes to property division during divorce, an HSA is treated in the same way that an IRA would be treated. The interest in such an account can simply be transferred between the divorcing parties as part of their divorce decree.

When a large sum of money or another high-value asset is at stake, going through divorce can be particularly unsettling in Massachusetts. However, if the two spouses are willing to go through mediation, they may be able to reach a settlement that is mutually beneficial. Otherwise, they will have to rely on a judge to make the final decisions for them regarding their financial matters, and the outcome of the divorce may not necessarily be what one or both parties would have wanted.

Source:, "Handling HSAs After Death or Divorce", Helen Modly, June 15, 2017

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

An Impressive Track Record
Of Achievement In The Law


Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions