Dividing marital property is generally one of the most difficult and contentious parts of a divorce. Couples, especially those who have been married for many years, have often accumulated a large number of valuable assets. Included in the assets that must be divided are individual and shared retirement accounts, such as pensions, 401(k)s, and IRAs.
Spouses who earned pensions through decades of hard work may understandably feel upset about having to divide money they view as being rightfully theirs. Likewise, other spouses will have supported a working spouse throughout a career and feel entitled to their fair share of the retirement funds. It is important to understand how retirement funds are generally handled in a Texas divorce so divorcees can set reasonable expectations throughout the process.
Are Retirement Benefits Always Divided Between Spouses?
Individuals who contributed to a retirement account prior to getting married will generally retain ownership over that portion of money. But contributions made after getting married are considered community property and are subject to division in a divorce, even if only one spouse’s name is on the retirement account. Accounts can consist of both personal and community property.
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