“Pension/retirement benefits are frequently the only valuable asset involved in a dissolution case. In California, pension/retirement benefits earning during the marriage, including any accumulations thereon, are community property. Often a pension/retirement plan contains both community and separate property interests, because the employee spouse may have contributed to it before marriage or after the date of separation. Additionally, the pension/retirement benefit’s value will change over time based on the employer’s years of service or the fluctuations of the stock market.”
“There are different types of pension/retirement plans, and different procedures are necessary depending on the type of plan. There are defined benefit plans, which include retirement plans, pension benefit plans, defined benefit plans, and cash balance plans. There are also defined contribution plans, which include 401ks, savings plans, profit sharing plans, money purchase pension plans, thrift savings plans, 457 plans, 403(b) plans, deferred compensation plans, and employee stock ownership plans.”
“Pension/retirement plans must be divided pursuant to an individualized order called a Qualified Domestic Relations Order (QDRO). The QDRO may specify the percentage of the plan which is community property or the manner in which the percentage is to be determined or it may specify the actual amount to be paid. The drafting of a QDRO’s provisions is governed by federal law, which in areas of conflict has pre-empted state law in the field of pension/retirement benefits.”
“The “time rule” for determining the community property interest in a pension/retirement plan is generally followed, meaning that the number of contributory years accrued between the date of marriage and the date of separation is divided by the total number of pension/retirement years accrued. However, other formulas or rules may be applied depending on the type of pension involved.”
[California Family Law Basics [certain citations omitted]]
