Complex assets still affect your tax standing and affect your division regarding finances after a divorce. If you live in California, you may have assets that include 401(k)s, annuities, IRAs and even pensions. It is essential to understand precisely how to divide each of these assets with your spouse after making the final consideration of divorce.
There is additional paperwork that is necessary for the property division of 401(k)s and pensions. This necessary document is the Qualified Domestic Relations Order that lists the rules regarding each (401)k because your spouse has the same rights. The finances face a division, a liquidation, a rollover into the IRA, or an exchange with another asset.
The second complex asset that will face a property division is an IRA. California is a state that utilizes community property division, so there is an even split in the finances. It is important to note that if your IRA is a Roth IRA, the valuation changes due to the tax-free status.
Annuities involve the most complex process when considering the property division of these assets. The split is dependent on the negotiation made with you and your spouse, but you do always have to rely on tax documentation. There are steps to help you such as:
- Advice from the annuity processor
- Advice from a financial expert
- Making an asset exchange by giving the annuity for something else
Property division of any form is something to think about after a divorce, but it becomes more multifaceted with complex assets. Contact a lawyer today who can help you navigate these divisions and ensure that you and your spouse receive what you are due in a fair manner.