My question involves a marriage in the state of: California, County of Riverside.
Is something like this possible in an open California Dissolution:
Facts: We have a total of about $50K of unsecured debt owed to 3 different credit card creditors. All of this debt is “old” – more than 4 years sitting basically untouched. The creditors are not yet aware of an impending divorce. We can settle all of the debt for about $0.35 on $1.00 if we act before end of this year. Yes, we are aware there will likely be some tax consequences related to the forgiveness of debt, possibly in 2014. Even with the tax consequences, the savings to the community property will be $15K or more.
The question: Could 1 of the several retirement/pension accounts be liquidated pursuant to an agreement/court order, BEFORE the balance of the community property is decided on how it is to be divided? If a 403 b account is liquidated by court order as part of the MSA, I believe the owner of the account is not charged the typical 10% penalty for early withdrawal.
If something like this is possible and makes financial sense, both parties are in agreement, etc. would this idea require a motion for bifurcation to make this happen? FYI, this particular account is not joined - yet.
Maybe I’m coming from way out is the left field bleachers, but we’re just trying to save a couple of bucks here and there.
Thanks in advance!

