Going through a divorce is stressful, and the process can become complicated. One of the most difficult aspects of a divorce can be property division, specifically when it comes to splitting retirement accounts. At the Law Offices of Ronald K. Stitch, we understand that this is a vitally important issue, and we will work to ensure you are treated fairly and receive your fair share. Let our Thousand Oaks division of retirement plan order attorney get started on your case today.
We know retirement plan division complications
You are probably scratching your head when reading information about dividing retirement plans in the event of a divorce. First, you need to understand that California is a community property state. This means that all property acquired during the course of the marriage (marital property) will be split equitably between the two parties. While this does not necessarily mean a 50/50 split, it needs to be as fair as possible.
However, retirement plans are complicated, and dividing them can be complex. There are many factors that need to be taken into consideration, including:
- What type of retirement account(s) there are, as different types have different rules.
- How many retirement accounts there are (some people have two or more).
- Whether the person who has the account is at retirement or withdraw age for the account.
Further complicating matters could be the fact that some portion of a retirement account could be considered “separate property” under the law if contributions were made pre-marriage. In these cases, the separate property will remain with the account holder.
Some accounts may be eligible for a Qualified Domestic Relations Order (QDRO). These are court orders similar to child support, alimony, and property rights that define how a spouse’s retirement or pension plan will pay the other spouse in the event of a divorce. Not all retirement plans are eligible for QDRO protection. They are only eligible for plans that are IRS tax-qualified and covered by the Employee Retirement Income Security Act (ERISA).
In some cases, the spouse with the retirement account may wish to buy out the other spouse of their portion of the assets in the account. They could do this by “trading” other portions of the marital assets or with a cash buyout.
Without a buyout, payouts to the other spouse may be made on a monthly basis when they reach retirement age.
We will help you get through this
If you are going through a divorce, then we know that this is a difficult time for you. However, the process of dividing assets can be complicated, especially when it comes to splitting retirement accounts. At the Law Offices of Ronald K. Stitch, our certified family law specialists understand the intricacies of this process and will work to ensure you receive your fair share of the assets. When you need a Thousand Oaks division of retirement plan orders attorney, you can contact us for a free consultation by clicking here or by calling 818-237-4574.