Retirement benefits earned during a marriage are considered community property and are subject to an equal division. Claiming or protecting retirement benefits is one of the most critical aspects of property division in California divorce cases.

The Los Angeles divorce lawyers at the Law Office of Mitchell A. Jacobs have the knowledge and experience to deal with complex retirement claims. Available retirement funds may come from IRAs, 401ks, employee pension programs or other investments set aside as a means of providing retirement income. That portion which was earned during the marriage is generally subject to an equal division as community property In cases where both spouses have retirement plans, they may agree to keep their own plan in its entirety by forfeiting any claim to the other spouse’s benefits.

While the process of dividing retirement benefits sounds straight forward, it can get very complex. For example, what if a spouse has been on the job for 20 years and married for 10, during which he has been promoted several times and awarded increasing amounts of retirement compensation? While half the account should be considered marital property based on the number of years, substantially all of it may have been earned within the last decade.

Additionally, calculating the current value of a future benefit for spouses who are decades from retirement can also significantly impact a claim on retirement benefits.

In still other cases, a family court judge may decide to allow a spouse to keep his or her retirement benefits and compensate by awarding the other spouse additional marital property in the divorce. This can also be accomplished through settlement or mediation without. In either situation, when one spouse is awarded part of another spouse’s qualified retirement assets, a “Qualified Domestic Relations Order” must be prepared and filed to tell a plan’s administrator the amount of benefits that should be paid to the alternate payee.

The proper handling of retirement accounts on behalf of someone divorcing their spouse is best left to an experienced Los Angeles divorce attorney. Contact the Law Office of Mitchell A. Jacobs for a confidential appointment to discuss your rights.