In terms of community income, what determines the portion of retirement pay considered community property?

The portion of retirement pay considered community property in California is determined primarily by the years of marriage during which one spouse was in service. This method is established by the "time rule," which states that the community property interest in the retirement benefits is calculated based on the total duration of the marriage compared to the period of service.

In essence, if a spouse served in the military or worked for a company for a specific number of years while also being married to their partner, only the portion of the retirement benefits that corresponds to the length of that marriage during the time of service is deemed community property. This approach ensures a fair distribution of retirement benefits accumulated during the marriage, as both partners are considered to have contributed to the growth of those benefits.

For example, if a couple was married for 10 years while one spouse served for 20 years, only 50% of the retirement benefits accrued during that service would typically be considered community property. Thus, understanding how years of marriage during service correlate directly to determining the portion of retirement pay that is classified as community property is crucial for proper legal and financial planning related to divorce or separation.