Page 38 - Family Law Services

• support a claim that a spouse failed to list all financial accounts on his or her financial disclosure
statement;

• support a claim that financial assets that one spouse is claiming are separate (either obtained pri-
or to the marriage, gifted, or acquired with separate monies) have been converted into marital
property by commingling with marital monies; and

• ensure that all financial assets have been accounted for.

Documents that may be requested include personal bank account statements and canceled checks; per-
sonal brokerage account statements; other account statements or passbooks, such as a certificate of de-
posit; loan and credit applications; and personal financial statements.

The tracing of personal bank and brokerage accounts can be very time consuming depending on the
number of transactions, number of accounts, and number of years. As noted previously, to ensure the
CPA’s time and effort is in line with counsel’s goals, it is important to have regular communication with
the attorney prior to and during the tracing analysis.

Retirement Accounts and Equity-Based Compensation

Pensions, Retirement Accounts, and Individual Retirement Accounts

A pension or defined benefit plan with a future benefit is apportioned between separate and community
property based on the qualifying years of service that occurred pre- or postmarriage and during mar-
riage. A defined benefit plan allocation requires an actuarial calculation. A retirement account may also
be a defined contribution plan or individual retirement account (IRA) that holds separate and community
funds. Tracing a defined contribution plan involves tracking the character of the account balance, contri-
butions, and allocated plan earnings, net of plan expenses, based on the character of the account balance.
Documents that should be requested when tracing retirement assets are monthly, quarterly, or annual ac-
count statements for the account from the date of marriage through the date of ultimate division. These
statements should reflect the plan balance at the date of marriage; contributions to, and distributions
from, the plan; and plan earnings during marriage and postseparation through the date of division.
Paystubs showing contributions made during the marriage and postseparation through the date of divi-
sion are also source documents on which to rely. When tracing separate and community interests in re-
tirement accounts, it is important to consider the character of funds rolled into or out of a plan or ac-
count.

Stock Options and Warrants

Stock options and warrants to acquire stock at or after a fixed date, often in the future according to a
vesting schedule, require apportionment between community and separate property if they are not fully
vested at the date of separation. Documents to request when tracing stock options and warrants include

• the governing equity plan documents;

• individual grant documents that set forth the number of stock options or warrants granted;

• the vesting dates;

• the exercise price (if applicable); and

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