Retirement Account Division Attorney in Katy
How Are Retirement Accounts Divided?
In Texas – a community property state – all income and assets acquired during a marriage must be divided equally in a divorce. The rule includes income on securities or separate property that was earned during a marriage. However, property acquired as a gift or through inheritance is excluded. Assets may also be legally excluded according to a valid prenuptial agreement. As such, property division requires that all assets and debts in the marital estate are inventoried and valued.
Our property division attorney, Georgia Barker, can ensure that your retirement assets are divided fairly and accurately under Texas law. We serve clients in Katy, Sugar Land, and beyond.
Helping You Classify Your Retirement Assets
You may have questions about whether an asset that you owned before your marriage, such as a retirement account, must be included within the inventory of the marital estate. In Texas, the court will apply the inception of title rule to classify an asset as separate or marital. The rule examines the status of the asset at the time you acquired it. If you held a separate title to an asset before the marriage, that classification would remain.
Retirement Assets May Be Community Property
That analysis becomes more complicated for contributions made during the marriage to separately owned property. For example, if you contributed to your 401(k) or IRA account during the marriage, your spouse might be entitled to a proportionate share. The value of a 401(k) account also must be adjusted to account for taxes on the distribution when it is paid. Your spouse's share may be swapped for other assets, such as the home, but remember to factor the tax implications into your calculations during these property division negotiations.
Protecting Your Rights with a QDRO
At Barker Law Firm PC, we have over 20 years of experience helping clients get answers to complicated property and retirement account questions that may arise in a divorce. One strategy that we often recommend is a qualified domestic relations order (QDRO). A QDRO is a court order that legally describes how retirement account assets will be distributed. After the court approves the QDRO, a copy can be distributed to your plan administrator. You can trust our Katy retirement account division lawyers to protect your best interests and your future.
At Barker Law Firm PC, we know how to protect your rights during property division negotiations. Call (713) 597-3911 now to request a consultation.