You have been married to your spouse for 20 years or more, and you want to share your income with him/her. It is perfectly fine. Now the question you have can dividend income be split between spouses? How can you do it?
What are the 3 Ways to Split Dividend Income Between Spouses? Of course, you can split your dividend income with your spouse. There are a couple of ways to it. First thing you can do, transfer half of your shares to your spouse’s brokerage account. Secondly, you can transfer the dividend from your brokerage to checking account and then send it over to your spouse. Thirdly, you can have a joint account where both of you can access.
Transfer half of your portfolio to your spouse
You can open another brokerage account for your spouse, I hope you open one with the lowest fees or no fees and transfer half of the holdings to your spouse. This should not be a complicated process. Although there is a charge associated with the transfer of shares.
You can open a brokerage account with Robinhood or Webull since they do not charge any brokerage but they will charge a fee when you transfer your holding to your spouse’s brokerage account.
Both of them have a FAQ section and “Contact Us” section which should be able to answer any specific questions that you might have.
Can I transfer dividend income to my spouse?
Of course, you can. Once the dividend from a company is credited to your brokerage account, you can either buy more share with the cash or you can simply withdraw the cash to your checking account. Now when you ask can dividend income be split between spouses? You need to realize, once the dividend is credited in your brokerage account, the cash is for you to use.
You can simply transfer the cash from your checking your spouses checking account or you both can have a joint checking account. Link that account with the brokerage account. And withdraw the cash in that specific account. And the cash is ready for you both.
Splitting dividend income between spouses might not be possible in a different way. Like if you want the dividend to automatically get credited to your spouse’s account, without manual intervention. That might not be possible just yet. You should definitely check with your broker though, in case they can arrange something for you.
If you want to know more about dividend income in retirement, you can check out my post here.
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