Is Your California IRA Protected From Creditors? Probably Not.
The bottom line is that it is very difficult to predict what part of a debtor's IRA will ultimately determined to be exempt depending on the debtor's remaining years to retirement, needs in retirement, and other factors. What is not at all difficult to determine is that if the debtor's needs will be taken care of by an exempt plan, the IRA will not be exempt and thus not protected from creditors.
PARTITION ACTION: AN EQUITABLE REMEDY
Any co-owner can file a partition action, regardless of the size of their ownership interest. In other words, if someone owns as little as 1% of a piece of property, they can exercise their right to partition. Under California Civil Procedure Section 872.210, “a partition action may be commenced and maintained by any of the following persons: (1) a co-owner of personal property or (2) an owner of an estate of inheritance, an estate for life, or an estate for years in real property where such property or estate therein is owned by several persons concurrently, or in successive estates.” Therefore, to prevail in a partition action, a party must prove through the property deed(s), other title paperwork, and any estate planning documents if applicable, that they have an interest in the property.