Skip to content

Categories

Orange County Family Law Attorney

Ensure That Pensions and Businesses Are Properly Valued In Your Divorce

Divorce attorney Orange County; The Maggio Law FirmOther than your house, the pensions and retirement plans of spouses as well as business(es) owned by one or both of the parties can often be the most values assets of the marriage.

With regard to pensions, such retirement plans are often divided by use of a Qualified Domestic Relations Order (“QDRO”), wherein the spouse that is not officially on the plan receives their community interest in the pension by a rollover IRA which avoids any tax implication to either party.  A 401K plan is often divided the same way.  Unlike a 401k whose value is whatever the current value in the account is, a pension is worth more in the future but does have a present day value that can be determined by use of an actuary, and such valuation can be considered in the division of all assets and debts in your case.

In addition, the business owed by you or your spouse or both parties is generally going to be considered a community property asset.  In a divorce, the spouse that is not the active party in the business is entitled to their one-half interest in the value of that business, but that value must be determined.  In order to figure out the value of a business, a forensic valuation of  the business needs to be done in order to attach a dollar figure to the value of the business.  Therefore, a forensic accountant needs to be hired by one or both of the parties, which will take time to complete and will come at a cost.  Once that value is determined, then the parties in the divorce can determine how the other spouse will be paid their share of the business, either from other assets of the marriage, or by a payment plan, or other agreed option.  For example, the controlling partner of the business can agree to give up their interest in the equity in the marital residence to offset the other party’s interest in the business.

The bottom line is that pensions and businesses are important assets that must be considered in your divorce case, because they have definite value that you want to receive your share of.  Consider the financial issues as part of a business deal that you are negotiating, and educate and empower yourself in the process so that you can control your financial future by protecting your financial interests in your divorce.

divorce_attorneyGerald A. Maggio is an experienced Orange County divorce and family law attorney and family law attorney located in Irvine, California, serving the Orange County and Riverside areas. Mr. Maggio assists clients with legal issues including divorce, legal separation, divorce mediation, child custody, prenuptial agreements, stepparent adoptions, and other family law issues. Mr. Maggio has practiced law in California since 1999, and founded The Maggio Law Firm in 2005, focusing exclusively on divorce and family law matters.

SHARE

RECOMMENDED

Can a Temporary Child Custody Order be Modified?

If you are in the midst of a divorce or custody case, the court may have already issued a temporary custody order. Temporary custody orders are intended to keep the…

READ MORE
Maggio law firm, Orange County California family law attorney, Orange County California divorce attorney, child custody, awarding child custody, Orange County California court awarding child custody

Does the California Court Consider Siblings When Awarding Child Custody?

For many children, their relationship with their sibling is the more important and most lasting relationship they will ever develop. The essential nature of the relationship makes the question of…

READ MORE
lawyer-com-premium-full-2
top-10-full
Ten-Best-full-2
Top Orange County Family Law Attorney
Top Orange County Divorce Lawyer
Best Orange County Family Law Attorney
Top Orange County Divorce Lawyer
top-100-full
Schedule a consultation