Jump to Navigation
Retirement account often overlooked among divorce issues

Tuesday, December 12, 2017

There are a number of different challenges that both spouses will face in a divorce situation.  Texas residents are well aware of the depth and breadth of divorce issues ranging from child custody to asset division. However, in the case of dividing property and assets, one particular asset is often overlooked entirely -- the retirement plan.

Modern media would suggest that fewer and fewer people are in a position to save for their retirement, but the reality is retirement funds are still taken seriously by the majority of Americans.  Many people have managed to pull together "nest egg" funds for the end of their working career, sometimes to the tune of hundreds of thousands of dollars.  Even if the number is considerably lower, however, a retirement fund is still considered a marital asset and is subject to division dependent upon the laws of the couple's home state. 

The division also depends on the type of account being discussed.  IRAs, for example, are regulated on the state level, while 401k accounts are handled federally. Here in Texas, retirement funds accrued during the marriage would be considered community property, and therefore, potentially subject to an equal split between the two spouses.  However, support from a professional in negotiating that split can often be helpful. 

Divorce issues can take many forms, but Texas residents know asset division is often the most contentious after child custody.  Understanding how assets are split in one's home state and knowing ahead of time what assets are on the table can be helpful in facilitating a faster and more equitable solution.  This can put both parties on the road to a more fulfilling life as individuals.  

Source: The Huffington Post, "The #1 Most Overlooked Divorce Asset", Daniel Sentell, Oct. 2, 2014

No Comments

Leave a comment
Comment Information
FindLaw Network

We Can Help You, Contact Us Today! Saturday Morning Appointments Available

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Office Location

Law Office of Douglas C. Smith
10514 Montwood Drive
El Paso, TX 79935

El Paso Law Office Map

Review Us