Your pension plan and other retirement assets play a big role in helping you achieve your goals for the future. The thought of divorce may have never crossed your mind but now it is wreaking havoc on your dreams of a peaceful and luxurious retirement.
Do you know what will happen to your retirement assets after divorce? Chances are the answer is no. The property division process is complex. California is a community property state, which means property and debt acquired during your marriage is subject to the property division process.
Retirement assets and pension plans complicate this process as many spouses start acquiring assets in these plans before marriage and continue to build up their retirement portfolios during the course of their marriage until they are ready to retire.
The value of your pension plan or retirement account matters
An accurate value of your pension plan and retirement accounts is necessary to divide community property fairly for both parties. In some cases, the pension plan may be worth more than other community assets combined. A clear understanding of the value of all of your assets will ensure both parties are protected during the course of settlement negotiations.
It is best to work with an experienced attorney to protect your retirement goals and financial future. An attorney can help you navigate the process of dividing assets, including your pension and retirement assets.
A qualified domestic relations order is required when pension plans and other retirement accounts are involved. This complicated document plays a significant role in your ability to receive retirement and pension benefits. A simple mistake could harm your retirement so consider having a knowledgeable lawyer guide you through this process to ensure it is done right to protect your retirement goals and future happiness.