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Dividing a retirement account during a divorce

When a Houston couple decides to get a divorce, the couple is face with a multitude of decisions. Property division is often one of the most important aspects of the divorce settlement. A person's retirement account is frequently one of their largest assets. Dividing retirement accounts in a divorce is an important task that could have lasting consequences.

Retirement accounts are an important asset for many people. Houston residents rely on these accounts to provide for their retirement years. In a divorce situation, dividing these accounts is a critical issue. Retirement accounts that are added to during the marriage are generally considered marital property. If there was a retirement account that had money in it before a marriage, this would be considered separate property.

Dividing a retirement plan and pension plan often requires a Qualified Domestic Relations Order or QDRO. A QDRO spells out how a retirement account will be split between the partners and lets the plan administrator know how the retirement accounts should be divided. The QDRO should be completed before the divorce is finalized. The QDRO needs to be accepted by the pension or 401K plan so making sure that it is approved can be important before the divorce is finalized in case changes need to be made.

Because retirement accounts are often large assets and a QDRO can be complicated, a person may want to consult with a QDRO specialist. A legal professional skilled in family law can help guide a person through the many complications a divorce can bring on. An attorney has the experience to know how assets are divided in Texas and can help advise their clients on all of these important matters. Enlisting the help of divorce specialists is smart planning in order to ensure a person's future is protected.

Dividing assets in a divorce is often a complicated matter. It can be hard for a person to look past the emotional trauma that a divorce can bring on. An attorney is a good resource in making sure their client is on the right path and has every legal aspect figured out when it comes to a divorce.

Source: forbes.com, "How divorcing women should handle retirement accounts and pension plans," Jeff Landers, June 13, 2012

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Attorney Christine K. Lincoln

Christine K. Lincoln offers sound counsel and legal services to protect clients and their families facing divorce and other family disputes.

She will take the time to understand your individual needs and develop a comprehensive solution to protect your rights and interests.

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