What Happens to Assets Like a Pension Plan or Business During a Divorce?
Many business owners are surprised to find out that their business becomes part of community property in marriage. This is true even for businesses that were founded before the marriage takes place. The value that accrues during the marriage becomes part of community property in those cases. Sagaria Law has experience in negotiating and litigating some of the most complex financial situations for our clients. We have partnerships with financial professionals who assist us to help you determine fair business valuations to make an equitable division of a business venture or professional practice between you and your spouse. Various factors will be included in the business valuation such as accounts receivable, liquid assets, furniture, and other equipment, debts and liabilities, and also goodwill.
Both defined benefit and defined contribution pension plans also must be divided as community property. If this is not done at the time of divorce, then those assets still must be divided once they start paying out benefits. After they are divided, if the contributor spouse predeceases the other beneficiary spouse, those benefits are lost to a divorced spouse unless a Domestic Relation Order is in place. Valuing and dividing real estate, pensions, and retirement accounts also presents issues that are unique and require an experienced attorney like the ones at Sagaria Law. Likewise, we can help you understand any tax ramifications associated with the property division. Call Sagaria Law today to schedule your initial consultation so that our attorneys can assist you in these complex issues.