California, being a community property state, calls for pension plans, 401k plans, IRAs, and other types of retirement accounts to be divided equally. Next to the family home, retirement plans are one of the biggest assets of the marriage.
Retirement accounts are divided in one of two ways:
1. Qualified Domestic Relations Order
2. Divorce decree
The couple should decide if dividing a specific asset or account makes good financial sense. Just because you think you should get half does not mean that it has to be half of each asset. Sometimes it makes more sense to bargain or give up rights to a retirement account in return for more liquid assets, a larger portion of the marital home, or longer or shorter spousal support payments.
If you’re planning to get a divorce and your spouse has an employer-sponsored retirement plan, you’re legally entitled to part of it. Contact an experienced Orange County Divorce attorney who can help clarify the valuation and splitting of investments to ensure you receive all the marital property to which you are entitled.
