During a Texas divorce, many are unaware that their pension and retirement accounts can be divided. These are assets according to the state’s laws, and as such, the other spouse may be eligible to receive a portion of those funds. Here, clients will learn how retirement and pension accounts are treated during a divorce.
Pension and Retirement Accounts: A Couple’s Second-Biggest Asset
Though the marital home is a couple’s biggest asset, retirement and pension accounts aren’t far behind. Texas law states that, during divorce, it’s the court’s job to determine both spouses’ rights to those retirement accounts. Retirement accounts subject to division include:
•Deferred compensation accounts
This isn’t an exhaustive list of accounts that can be affected. Those involved in divorce proceedings should consult divorce lawyers Bee Cave, TX to discuss a case’s specifics.
When Are Spouses Entitled to the Other Person’s Accounts?
Texas follows community property laws, which means certain considerations play a role in a spouse’s eligibility to receive a portion of the other party’s accounts. For instance, if a contribution was made before the marriage occurred, an account may be regarded as separate property. However, if an account was created after the marriage, it might be regarded as community property no matter whose name is on the account. There’s no law stating that account balances must be evenly divided.
Preventing the Other Spouse From Cashing Out
In many parts of Texas, standing orders become effective once a complaint is filed. These orders forbid spouses from cashing out or withdrawing funds from retirement accounts. If a divorce is filed in a county without an automatic order, Divorce Lawyers Bee Cave TX may petition for a temporary order that puts similar restrictions in place. If these orders are violated, the spouse may be held in contempt.
Call With Questions About Retirement and Divorce
If a divorce is imminent and a spouse has questions about how proceedings may affect their retirement accounts, Margaglione Law PLLC may be able to help. For years, the team has helped clients navigate the process, protect their rights, and achieve fair outcomes. Call to schedule a consultation.