|
|
|
|
| Author |
|
|
Registered
Join Date: Jun 2005
Location: Hamburg & Vancouver
Posts: 7,693
|
D-I-V-O-R-C-E Question
A good friend of mine is going through a bitter divorce in California. A settlement of all assets seems to have been agreed after much grief, but there is one sticking point. He has a "deferred compensation plan" at the company at which he works. This will theoretically be paid out in 10 annual installments after he retires.
She wants half - and he's prepared to give her half - but the company refuses to put the plan in both names as a matter of policy. It has to remain in his name. He could pay her out in present value - but there's an even chance the company may go under - in which case the deferred compensation plan disappears. She is unwilling to accept a simple promise on his part to pay. They are trying to find some sensible way to split this plan up right now - or secure her half interest in it - but have been unable to come up with any formula that works for them both. They have been massively raped and pillaged by lawyers already - and are reluctant to go back to them again with this last detail. Does anyone have any experience with this kind of thing? Any meaningful input will be appreciated.
__________________
_____________________ These are my principles. If you don't like them, I have others.—Groucho Marx Last edited by Dottore; 12-25-2007 at 02:50 PM.. Reason: spelling |
||
12-25-2007, 02:48 PM
|
|
|
Banned
Join Date: Apr 2005
Location: Usa
Posts: 3,621
|
My solemn advice after going through that would be to stop being petty--no matter how much you have on the line--and come to an agreement, together. It'll be the last thing they ever agree upon. It ain't worth it. All they're doing is feeding their lawyers. They need to be civil this one last time...next Christmas will be better for them both hopefully!
Christian. |
||
|
12-25-2007, 03:16 PM
|
|
|
Registered
Join Date: Aug 2004
Location: Wisconsin
Posts: 4,362
|
A buddy just went through the same thing. He and his ex agreed on a deal where he cashed out with her at a lower value. Like your friend's situation there was some question as to how much, if any money would be available at retirement. They are both pretty sensible people, however, and managed to get through the whole divorce with one attorney and very low fees. It sounds like your friend's wife may not be willing to deal.
|
||
|
12-25-2007, 03:31 PM
|
|
|
Dog-faced pony soldier
|
He could always cash it out and pay out 50/50. Not ideal, but if it gets rid of her once and for all, it might be worth the tax hit.
__________________
A car, a 911, a motorbike and a few surfboards Black Cars Matter |
||
|
12-25-2007, 04:17 PM
|
|
|
Registered
|
If it is truly a deferred comp plan registered with the State and SEC, the money he has put away is his and should be safe from a company collapse, unless it is all in the company's stock(bad). Can he lessen the risk by moving the $ into other shares or money market funds? He cannot collect or get a payout until a certain age is normally past(59 1/2 )(or whatever the plan says), or he will pay a huge penalty(bad). So if he takes $ out(again, if the plan allows it), they both lose. tough spot to be in.
|
||
|
12-25-2007, 04:20 PM
|
|
|
canna change law physics
|
Cash her out, get it done, move on, don't look back. There is no other sane way.
__________________
James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
||
|
12-25-2007, 04:56 PM
|
|
|
|
Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,509
|
Is she hot? Just kidding...my daughter got divorced in California...community property & all that. She ended up paying his debts, and paying him alimony for a couple of years. No kids...go figure.
__________________
"Now, to put a water-cooled engine in the rear and to have a radiator in the front, that's not very intelligent." -Ferry Porsche (PANO, Oct. '73) (I, Paul D. have loved this quote since 1973. It will remain as long as I post here.) |
||
|
12-25-2007, 05:30 PM
|
|
|
?
Join Date: Apr 2002
Posts: 30,410
|
Is she looking to remarry
 ?
|
||
|
12-25-2007, 05:37 PM
|
|
|
Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,509
|
Quote:
__________________
"Now, to put a water-cooled engine in the rear and to have a radiator in the front, that's not very intelligent." -Ferry Porsche (PANO, Oct. '73) (I, Paul D. have loved this quote since 1973. It will remain as long as I post here.) |
||
|
12-25-2007, 05:42 PM
|
|
|
?
Join Date: Apr 2002
Posts: 30,410
|
Dang...struck out at the family gathering, and now this
|
||
|
12-25-2007, 05:44 PM
|
|
|
canna change law physics
|
Quote:
__________________
James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
||
|
12-25-2007, 05:48 PM
|
|
|
?
Join Date: Apr 2002
Posts: 30,410
|
I kid, I kid
Haven't you read the other thread...
|
||
|
12-25-2007, 06:01 PM
|
|
|
|
canna change law physics
|
Well, you could have going after your brother's wives...you never know...
__________________
James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
||
|
12-25-2007, 06:10 PM
|
|
|
?
Join Date: Apr 2002
Posts: 30,410
|
Quote:
Who did you marry? |
||
|
12-25-2007, 06:15 PM
|
|
|
canna change law physics
|
Not that there's anything wrong with that...
__________________
James The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994) Red-beard for President, 2020 |
||
|
12-25-2007, 06:29 PM
|
|
|
Registered
Join Date: May 2004
Location: Lake Cle Elum - Eastern WA.
Posts: 8,417
|
A true "Deferred Comp" can be withdrawn for emergencies. Withdraw her 1/2, she pays the tax on it. His stays where it it.....In most states, 1/2 of the money is her's if they have been married since contributions started....
__________________
Bob S. 73.5 911T 1969 911T Coo' pay (one owner) 1960 Mercedes 190SL 1962 XKE Roadster (sold) - 13 motorcycles |
||
|
12-25-2007, 06:33 PM
|
|
|
Registered
Join Date: Aug 2000
Location: Palm Beach, Florida, USA
Posts: 7,713
|
I think the sticking point is the company, not the two exes. I don't do family law but it seems to me this sort of thing is done all the time. I think all they have to do is go back to court and get an order directing the company to put a portion of the defered comp into her name. I think it is not that the company can't do it, it's more that they won't. With a court order they don't have a choice.
__________________
MRM 1994 Carrera |
||
|
12-25-2007, 08:02 PM
|
|
|
Registered
Join Date: Jun 2005
Location: Hamburg & Vancouver
Posts: 7,693
|
Quote:
Many thanks for all the replies.
__________________
_____________________ These are my principles. If you don't like them, I have others.—Groucho Marx |
||
|
12-25-2007, 09:03 PM
|
|
|
Unregistered
Join Date: Aug 2000
Location: a wretched hive of scum and villainy
Posts: 55,652
|
And the say that OJ was a bad guy. Go figure.
|
||
|
12-26-2007, 05:22 AM
|
|
|
Registered
Join Date: Jul 2004
Location: Maryland
Posts: 31,419
|
Quote:
The Navy will not assign or name your spouse on the retirement account, but, once the payments begin, the spouse simply calls and the government and payments are assigned based on the divorce settlement. The reason this is done is to protect the service member should the spouse pass away prior/after the service member retires: the relatives of the spouse have no claim on the service members retirement account. Once the spouse has passed, the payments revert back to the service member. If the spouse was named on the account that would not be the case. I suspect that company in question has the same concern.
__________________
1996 FJ80. |
||
|
12-26-2007, 05:30 AM
|
|
1984 Porsche Carrera coupe
993
1970/1982 Porsche 914-6/911SC 2.7 RS
