A divorce can be contentious and complicated. There are many issues that need to be resolved before a divorce can be finalized, including the division of property. This includes the division of retirement accounts held by either spouse. At the Law Offices of Ronald K. Stitch, our certified family law specialists have the experience you need to get through all aspects of property division. Let our Westlake Village division of retirement plan orders attorney talk to you about your case today.
Retirement plans can be a divorce complication
There are so many different types of retirement accounts available. One thing that is often overlooked when people decide to get divorced is how, exactly, to split retirement accounts. California is a community property state. This means all assets acquired during the marriage are considered joint property and must be divided equitably.
The tricky part about retirement accounts is that not all of them may be marital property. If one or both parties worked before marriage, their savings from before marriage would be considered “separate” property. This can become further complicated if the retirement account is an investment or brokerage account containing assets that have gained or lost value.
Your Westlake Village property division attorney often uses a skilled accountant and other financial experts to ensure the retirement accounts are appropriately divided. These experts consider various factors when deciding how the accounts should be divided, including whether withdrawals can legally be made without massive tax penalties, the future value of the plans, whether the working spouse continues to work and not take withdrawals, and more.
This means they will allow the spouse with the retirement account to compensate the other spouse for their portion of the community property and the money in the account. They can use different portions of their assets to make this buyout. For example, they could essentially trade their spouse their portion of the marital home in return for keeping their retirement account intact.
A spouse cannot avoid paying their portion of a retirement account by deciding not to retire. A spouse’s death does not mean the other spouse has no rights to the money. They do, and they can file a claim with their spouse’s estate to retrieve their portion.
We are ready to help you get through this
Divorce is incredibly complicated, especially when it comes to dividing marital assets. One thing that many people need to consider is how they will divide retirement accounts. This can be a complex process, and you will need help from a skilled Westlake Village division of retirement plan orders attorney. At the Law Offices of Ronald K. Stitch, we will get you through this process as smoothly as possible. You deserve to be treated fairly, so please get in touch with us for a free consultation by clicking here or by calling 818-707-0202.
