How to Divide Retirement in a Divorce
Rancho Cucamonga Property Division Attorneys
While there are a number of spouses out there who go through divorce and
wonder who will get the car or the house, there are some dissolutions
with more complex details. One of these details is how to divide retirement
accounts. As individuals build up their retirement savings, they might
not be thinking about the possibility of having to split it in the event of
divorce. During the divorce process, retirement is divided in the same manner
as other assets in property division. It is important to know what to
do during this time and having a Rancho Cucamonga divorce lawyer on your
side can help you.
Call us today at (909) 992-0188 for a
What the Family Code of California Says
According to the Family Code of California, when it comes to
property division, assets are divided into two categories: community property and separate
property. Community property refers to the assets and earnings acquired
while the couple was married. Separate property is considered anything
that was owned by one party prior to the marriage or items that were received
as a gift specifically for one spouse or inheritances. When it comes to
retirement, they are considered benefits in the form of employment compensation
and are thus community property. Division of retirement factors in all
forms of plans.
The types of retirement plans that can be divided in family court include,
but are not limited to:
- Simple IRA
- Traditional IRA
- Roth IRA
When it comes to federally controlled retirement plans, these matters are
determined by the family court based on a qualified domestic relations
order. Simply known as QDRO, these orders must qualify based on a number
of things. However, there are various things that are not affected by
a QDRO and things the order cannot do. This includes requiring the plan
to pay extended benefits not offered by the plan, providing benefits exceeding
value of interest, or provide an alternate payee with payment that is
payable to a prior alternate payee.
Trust an Experienced Attorney with Your Case
It is important to know that defined benefit plans will likely utilize
an actuary or an experienced attorney, to help determine the current value
of the plan. They often use an inflation-based estimate from the current
moment until the date payments are set to begin. This can be beneficial
in making sure that the division of retirement is done properly and accurately.
Our firm has handled numerous cases involving the division of retirement
plans and we know how to approach these matters in the most effective
manner possible. If you need representation during a divorce and you know
that your retirement plan is to be involved, trust our firm to help you.
Don’t hesitate to learn your legal options for this stressful and
Get a free consultation today.
Call (909) 992-0188.