Brea California Divorce Settlement Attorney
In divorce and the division of marital property, California is a "community property" state. In general, this means any property or assets acquired during the course of a marriage -- excluding gifts and property brought into a marriage -- must be divided equally. Once the value of a marital estate has been determined, less any joint debt, each spouse will be awarded half of all joint assets and property. In some cases one spouse may be awarded the family's home while the other is given assets from a business or bank account; in other circumstances, the family home may be sold with the proceeds being divided equally between husband and wife. At the law office of William Hinz, our divorce attorney works closely with clients in order to explain the process involved in the division of marital assets. While any final division is subject to approval by the court, a pre-nuptial agreement, custody arrangement, or medical condition could impact how the court ultimately divides marital assets.
We protect our clients' rights and financial interests by taking steps early on and throughout the process to ensure you aren't saddled with debt that isn't yours or denied assets rightfully yours. To schedule a free consultation and discuss your case, contact divorce lawyer William Hinz today.
What Happens to My Retirement Benefits? My 401k Plan?
Any interest earned, or money accumulated in a pension plan or 401k account during the course of your marriage, is considered community property in the state of California. However, under California state law, a judge reserves the right to either divide the proceeds of retirement funds as part of your divorce settlement (present value) or defer their equal division until they are due to be paid (reservation of jurisdiction).
- Reservation of Jurisdiction: This is the most common form of division of retirement benefits in California. Essentially, under a reservation of jurisdiction, once a spouse with benefits retires, his or her ex-spouse will receive a percentage of each retirement check issued. The amount received is determined by dividing the amount of years a couple was married by the number of years a spouse has participated in a retirement plan. For example, if you contributed 10 years to a pension plan and were married for 5 of those years, your ex-spouse would be entitled to 1/2 of 10 divided by 5 (or 1/2 of 50% which equals 25% of each check).
- Cash Out: Under a cash out division, an actuary estimates how much a pension plan will be worth by the time the participating spouse retires. Once a projection is made, each spouse is then awarded half of that amount as part of their divorce settlement.
Post-Divorce Agreements: Considering Your Options
Depending on the financial situation of a couple, it may make more sense to enter into a post-divorce agreement which specifies how property is to be divided. If both of your own your own business or have medical chronic medical problems it may make more sense to negotiate certain aspects of your financial situation prior to any division of marital assets.
Need Additional Information? Contact William Hinz Today
The division of marital assets can be complicated and frustrating. In order to avoid confusion and lengthy court battles, gather the information you need to protect your rights and financial interests. Call or contact divorce attorney William Hinz today and schedule a free consultation to discuss how we can help you help yourself.