One of the most complex issues in a divorce proceeding is the division of property and assets. Part of that is splitting retirement plans. While that may sound straightforward, it certainly is not. You are going to need help from a Simi Valley division of retirement plan orders attorney to walk you through this process. At The Law Offices of Ronald K. Stitch, we understand all aspects of California property division and are ready to get into the details. We will ensure you are being treated fairly every step of the way.
Why are retirement plans so difficult?
California is a community property state, meaning that all property and assets acquired during the course of the marriage are considered to be owned by both spouses. During a divorce, the property must be split equally by both parties. This is not always easy.
Retirement plans are harder to deal with than other types of property. Yes, even your retirement plan must be split, even though it is your work that earned the money in the account. Therein lies the tricky part:
- All assets gained in the marriage are community property.
In many cases, not all assets in a retirement account are community property. If you worked before the marriage, the retirement savings in those accounts will be considered separate property under the law. If you are still working after the divorce, money going into that same account will be considered separate property as well.
So, retirement accounts often have both community property and separate property.
Figuring this out
It takes a skilled divorce lawyer to sort through all of the options available to a separating couple. For these cases, the court will allow a non-pro rata division of property. This means that the spouse with the retirement account may choose to compensate the other spouse for their share of the community property portion of the account with some of their other assets. This could include the marital home, other real estates, or even a cash buyout.
If the two spouses choose to split the retirement plans, experts may be needed to sort through the details. There are many factors to consider, including when retirement plans withdrawals can be legally made, the future value of the pension, whether the working spouse continues to work and not take withdraws, etc.
A spouse cannot avoid paying the other spouse by not retiring, and the death of a spouse does not take away the other spouse’s right to receive the money.
We will get to work on your case immediately
When you are going through a divorce, there are so many issues that need to be handled. Dividing property and assets needs to be done correctly. However, retirement plans present specific challenges when it comes to them being divided. At the Law Offices of Ronald K. Stitch, we will make sure this is done correctly. This is about protecting you and your financial stability, and we take that seriously. When you need a Simi Valley division of retirement plan order lawyer, you can contact us for a free consultation by clicking here or by calling 818-237-4574.