According to Texas law, any employee benefits earned by a spouse during the marriage are considered community property and subject to property division. This includes retirement accounts of all types such as 401(k)s, 403(b)s, pensions and individual retirement accounts (IRA). At The Lincoln Law Firm, PLLC, we take great care to determine which portion of a retirement account is community property, as some portion may have accumulated prior to the marriage, thus making it separate property which should be kept by that spouse.
Aside from one's home, a party's retirement account is often a person's largest asset. Because a retirement account is typically a significant portion of a person's estate, we carefully review the retirement accounts owned by both spouses at the time of divorce in evaluating how the parties' assets and debts should be divided.
To schedule your consultation, call 832-478-6750. You may also fill out a contact form and someone from our firm will be in touch with you soon.
How Retirement Accounts Are Divided
Retirement accounts are different than other marital assets in that certain procedures need to be followed in their division in order to avoid income tax penalties. In dividing a 401(k) or 403(b) there is a specific tool used to facilitate their division, the qualified domestic relations order (QDRO). A QDRO is a legal order created following a divorce that splits and changes ownership of a retirement account. A QDRO grants ownership or partial ownership of the employee's retirement account to an alternate payee, the employee's former spouse.
Individual retirement accounts typically do not require a QDRO for division. However, certain forms need to be completed and procedures followed in order to properly divide individual retirement accounts without incurring tax penalties. At our law firm, you will find a Houston retirement account division attorney with the experience necessary to assist in the division of these unique and important assets.
Dividing Other Employee Benefits
We make certain that no employee benefits are overlooked. If one spouse is receiving compensation in the form of stock options, restricted stock, unqualified earned bonus units or restricted stock dividends, they may be subject to division. Similarly, life insurance policies with cash values, severance packages and other employee benefits may be considered community property and therefore subject to division at the time of divorce.
Contact An Employee Benefits Division Attorney Serving Tomball
We look forward to speaking with you. To arrange a consultation with a 401(k) and IRA division lawyer, please call 832-478-6750 or contact us by email. Hours: Monday-Thursday, 8:30 a.m.-5:00 p.m. and Friday, 8:30 a.m. - 12:00 p.m.