Couples going through a divorce in California may face a multitude of personal and financial challenges. These range from determining child custody to deciding who will take ownership of the family home.
One thing that often gets overlooked is the effect that divorce can have on retirement savings. This effect can be felt even if retirement is still some years in the future. It can be challenging to remove emotions from the divorce negotiations. A third party may help all involved to think clearly and look at the decisions they are making from a financial standpoint.
An IRA is an example of a retirement account that can be affected by divorce. A person may think that since their name is the only name on the IRA account, it is off-limits to their soon-to-be ex-spouse. The truth is that everything an individual acquires during the marriage is considered marital property. It may be prudent to consider the penalties that are imposed when a person accesses their IRA before they are 59.5 years of age when determining the assets they will retain post-divorce.
It could be that one spouse earns a pension at their place of employment while the other spouse does not. Similar to an IRA, pensions and retirement plans are considered as marital assets. The amount of pension a person earns while they are married can be subject to division. There are a number of guidelines surrounding Social Security benefits. Some of these guidelines include the number of years a couple has been married and the length of the time the soon-to-be ex-spouses were employed.
Navigating financial challenges associated with divorce can be a challenge. A family law attorney may help their client answer questions they have about property division, division of joint assets and the valuation of property being divided. The attorney may serve as a resource on things like child custody, alimony, visitation rights and more. When necessary, the attorney may represent their client in the court of law.