Each state sets its requirements for the division of property in a divorce. Under Texas law, divorcing spouses must equitably split their assets, including pension and retirement benefits. Dividing pension and retirement benefits in a Frisco divorce can be complicated, especially with the involvement of high-value accounts. A knowledgeable divorce lawyer could help you understand your options for dividing these assets fairly.
Pension and retirement benefits are typically considered marital assets when the account’s earner paid into it throughout the marriage. However, amounts contributed to the account before the marriage generally do not count as shared assets. Therefore, when dividing pension and retirement benefits in Frisco, divorcing spouses will generally subtract amounts already in the account prior to the marriage.
Equitable division of marital assets means that assets must be divided fairly, but not necessarily equally. When dividing pension and retirement benefits in a divorce, a Frisco attorney may examine:
In some cases, fair asset distribution results in each spouse keeping their retirement accounts with no further splitting necessary. In other cases, however, they may need to divide the accounts, such as when one spouse has drastically different retirement accounts available to them.
Divorcing spouses may choose from several potential strategies when dividing pension and retirement benefits in Frisco.
In some cases, spouses may simply decide to split pension and retirement accounts. In such cases, the court may issue a Qualified Domestic Relations order allowing the former couple to avoid penalties when splitting or transferring retirement assets. The spouse who did not pay into the accounts can take their payout and roll it into their retirement account without incurring penalties or fees.
One spouse may need to take a direct payout from the retirement account to handle their financial needs more effectively post-divorce.
If the spouse who paid into the retirement account wants to keep it intact, the other may allow them to buy out its value. A buyout may require the spouse who keeps the account to give up other assets in exchange.
If you are in the midst of divorce proceedings, managing asset distribution fairly and effectively can help avoid future financial challenges. The attorneys at Towson Law Firm could help with dividing pension and retirement benefits in a Frisco divorce. A knowledgeable lawyer could provide you with information about options that may allow you to keep the assets you deserve. Contact us today for more information.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
