California is a community property state. Therefore, retirement
plan benefits earned during your marriage may be considered
community property and subject to division upon your dissolution
of marriage (i.e. divorce).
Pursuant to the laws of California, if you are a member of SBCERA
while you are married, your former spouse may be entitled to an
interest in the community property portion of your retirement
benefit.
Upon a divorce or divorce filing, as an active or retired
member, please notify
SBCERA as soon as possible. If not, you
could face long delays in the payment of your current and/or
future retirement benefits.
Notifying SBCERA Regarding a Divorce
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Submit a Copy of your Judgment of Dissolution of
Marriage or Property Settlement Agreement: As
soon as you receive a completed Judgment of Dissolution of
Marriage/Property Settlement Agreement from your divorce
proceedings, please submit a copy to SBCERA. The judgment will
undergo a detailed review by SBCERA legal counsel to assess
whether you are entitled to your retirement, including the
community property portion, as your separate property or
whether your spouse is entitled to an interest in the community
property portion of your retirement benefit as determined by
the court. All pages of this document, including any
attachments, will be required and it must contain a court’s
file stamp and the judge’s signature. If your spouse was not
granted any rights to your benefit, no further steps may be
necessary. However, you must still submit this documentation
and SBCERA will notify you in writing regarding what, if any,
additional steps are necessary.
PLEASE NOTE: It is important that the
language in your judgment is clear. It is best if the judgment
specifically mentions SBCERA and clearly states what you and
your spouse are entitled to (e.g. 60% and 40%). A good way to
tell if the information is clear is to read the judgment to
yourself and/or a friend. If each of you can easily understand
the language, it is probably clear enough for SBCERA and will
be considered acceptable for our records
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File a Joinder—it is Mandatory: If the
court awards an interest in the community property portion of
your retirement benefit to your former spouse, you will be
required to “join” SBCERA as a third party to your divorce
proceedings. This can be done by filing a Joinder with the
court in the same county as your divorce filing. SBCERA must be
joined to your case to recognize any court orders before
dividing and distributing your retirement benefits to you
and/or your former spouse. If SBCERA has not been joined to
your case when you retire or terminate your employment,
distribution of your retirement benefits and/or contributions
may be delayed until a Joinder has been filed and SBCERA has
been served with the Joinder.
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Obtain a Domestic Relations Order
(DRO): After filing a Joinder, you may also be
required to file a DRO. This is a court order that provides
SBCERA with detailed instructions regarding how the retirement
benefits are to be divided. In order for SBCERA to honor
the DRO, must be compliant with the 1937 Act and other
applicable laws pertaining to pensions. SBCERA offers various
sample DROs to assist in the development of an
acceptable DRO. For more information, view our Frequently Asked Questions.
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Inform SBCERA of Any Other Orders: Each
divorce case is different. Please provide SBCERA with any
additional orders or documents pertaining to your divorce that
may affect your retirement benefits.
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Change Your Beneficiary: Upon your
divorce, be sure to update your
beneficiary. If you will no longer be nominating a spouse,
you will also need to complete a Justification for Non‐Signature of Spouse form.
Both forms should be returned to SBCERA as soon as possible.
This information is not intended nor does it serve as legal
advice as SBCERA and its staff cannot provide you with legal
advice concerning your divorce or community property rights
issues. For any additional questions, please contact SBCERA. Additionally, it is advised
that you seek competent legal advice if you have any further
questions or concerns regarding the division, if any, of your
SBCERA retirement benefit(s). If you require a Family Law
Specialist to assist you during this time, please contact
the San Bernardino County
Bar Association or The State Bar of California.