Texas Divorce & Division of Retirement Funds
In Texas, equity that has been established and contributed to during the course a marriage in a 401K savings account, pension fund, Roth IRA, or IRA is viewed as community property. Retirement plans of any type are considered indirect compensation to a spouse, according to Texas courts, which is viewed similarly as income. This means that any of these accounts are subject to division during a divorce proceeding, regardless of which spouse’s name they are in at the time of the divorce.
Assessing and evaluating the value of these individual retirement accounts is often a complex process, especially if a spouse contributed to the account for several years prior to when the couple got married. Additionally, if the couple spent any time living in a state other than Texas that is considered a common-law state during any point of the marriage, and while the account was accumulating, this can make calculations of division even more complicated.
An experienced Texas divorce lawyer can explain the complexities of division of retirement, what you can expect, and what you will be entitled to before your divorce decree is complete. When you have legal assistance from the Law Offices of Lauren Cain, you can feel confident that you have skilled legal advocates with experience in the division of retirement, as well as every step of the way, until your divorce is complete. Call today for a free consultation: 214-326-4664.
Professional Retirement Division
Military reservists’ retirement is handled a bit differently than regular retirement because it is based on a point system. However, the points are still regarded with the same rules as regular retirement savings is considered – if the points were earned prior to the marriage, they are disregarded when the division of retirement is done. Only the points that were earned when the service member was married are computed for the division of retirement.
Even if the employee spouse who has the retirement account is not yet retired during the divorce proceeding, you can expect the final decree to be drafted to reflect which portion of the retirement benefit will be allocated to the non-employee spouse. Essentially, the law understands that the non-employee spouse had the expectation of receiving the working spouse’s retirement benefits when the eligibility time approached, and the divorce should not change that expectation.
Regardless of your circumstances, it is always in your best interest to retain the services of an experienced Texas family law attorney who understands the intricacies of division of property pertaining to retirement funds, pensions, and divorce. Determining the appropriate portion of a retirement account should be allocated during the divorce requires the assistance of a qualified and knowledgeable attorney. At The Law Offices of Lauren Cain in Frisco, Texas, attorney Lauren Cain has helped clients with their divorces for over two decades.
Working for Your Best Interests
Texas courts understand that retirement funds were contributed to using income that was accrued during the marriage, therefore those funds rightly would have been split during the course of the marriage if they had not been contributed to the retirement account. However, that part of the income was instead placed into an account for a later date for the financial security of both spouses when retirement age was reached. A divorce should not destroy the sense of security the retirement account provided.
Disputes often arise during divorce proceedings over the amount of retirement funds that should be divided. When this happens, Lauren Cain works to ensure that your best interests are maintained. Once an amount has been determined for division, she seeks the maximum amount of funds, based on your financial goals, as well as the property division strategy.
You will be assisted with the requisite qualified domestic relations order (QDRO), as well as any other potential documentation you may need for the plan. The administrator of the plan will review the QDRO and determine whether it complies with the plan document and ERISA. The Law Office of Lauren Cain will ensure that every step of the process is fulfilled, all the way through to the funds transfer to your chosen account.
Speak With a Lawyer about Division of Retirement for Your Divorce
The Law Office of Lauren Cain represents clients of the Frisco and Collin County areas of Texas in difficult and confusing divorce proceedings. If you need a skilled Texas divorce attorney who will fight for a fair division of property and your best interests, contact the Law Office of Lauren Cain to schedule a free consultation about your divorce. Call us at 214-326-4664 or contact us online today.