When a couple makes the decision to end their marriage, there are many issues that they need to address. One of the most complex of those issues is the division of assets. Part of those assets often include retirement accounts, such as 401(k)s, IRAs, and pensions. These accounts can be a significant part of a couple's financial portfolio, and they can be particularly difficult to divide because of their tax implications and complex rules. The following information is a brief overview of how retirement accounts are addressed in divorce. For more detailed information, speak with an experienced divorce attorney.
Marital Estate
Under Texas family law, retirement accounts are considered marital property if they were acquired during the marriage. This means that they are subject to division in a divorce. However, the specific rules and procedures for dividing retirement accounts can vary depending on the type of account it is. Retirement accounts are different than regular savings and checking accounts and funds cannot just be withdrawn at any time.
Because of the regulations that are associated with retirement accounts, any division of the account between the spouses is done under court order. This order is referred to as a qualified domestic relations order (QDRO).
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