Are you facing a divorce in Texas? Are you concerned about the effect it will have on your retirement?
Your retirement account may be your most substantial asset – along with your home. The rules for dividing your IRA, 401(k) and other retirement assets can be complicated at times. When a retirement account is in the six or seven figure range, it can play a pivotal role in how assets are split between the divorcing parties.
Community property in Texas
Generally, assets gained during a marriage are community property in Texas. During a divorce, community property is routinely split 50/50, especially when there are no custodial issues or fault grounds at issue.
Money deposited into retirement accounts during a marriage, as well as any losses or gains, are also subject to property division. However, amounts accumulated prior to marriage generally stay with the spouse who brought the account into the marriage, provided that those amounts are convincingly traced.
When spouses have individual retirement accounts, the spouse with the higher net-gain may have to write a check for the difference between the two accounts, since they are entitled to half of their spouse’s contribution as well.
Leaving retirement accounts alone during divorce
In some cases, the divorcing spouses may come to a mutual agreement to leave retirement accounts alone. This is most common when there are many other types of assets involved, and they want the process to be as simple as possible.
Retirement account division may be included in a pre-nuptial agreement, or in a post-nuptial agreement which spells out exactly how the parties wish their assets to be divided if the marriage ends in divorce.
Don’t face this difficult time alone
Dealing with a divorce can put stress on every aspect of your life. Let the skilled divorce lawyers at Gunnstaks Law Office guide you through the process, from the initial filing to the signing of the final papers and beyond.