The Woodlands Retirement Division Lawyer

Retirement Division Attorney In The Woodlands, TX

In every Texas divorce, the couple seeking divorce will need to address the division of their shared or marital property. This can have immediate and lasting impacts on the financial situation of both spouses and can also have several negative implications on their futures. This can be especially the case if the spouses share substantial retirement accounts. In these situations, having our The Woodlands retirement division lawyer team on your side is essential.

At the Walke-Wilson Firm, our team of highly skilled divorce and property division lawyers has been assisting clients in The Woodlands and the surrounding areas for over 35 years. We have the experience and resources necessary to ensure that you understand how your lives will be impacted by the division of your retirement accounts and how you can adjust your future plans to comply with the division of these assets.

We understand that you have worked hard for your retirement assets, and these funds are some of your most important savings, ensuring that your interests are protected in the future. Through negotiations and litigation, the team at the Walke-Wilson Firm is here to ensure you hold onto as much of your retirement assets as you can and that your case ends in as favorable an outcome as possible. Trust our team to keep your interests in mind when representing your divorce case.

Defining Separate and Community Retirement Assets in The Woodlands and the Surrounding Areas

In a Texas divorce, it is first important to understand the laws surrounding property division. Texas operates as a community property state, meaning that all property that was acquired by either spouse during the marriage is considered to be marital or shared property. On the other hand, any property that was obtained and earned prior to the marriage is considered separate property and, therefore, protected from a division of property in divorce.

Any retirement contributions that were created during a marriage are typically considered to be community property, no matter what spouse holds that account in their name. This means that, in the case of a divorce, both parties can lay claim to the assets held within the retirement accounts, and these accounts must be considered in a division of property. However, you may have an account that was funded completely before marriage. This will be considered separate property.

In cases where a retirement account collected contributions before and during the length of your marriage, you will usually be able to claim ownership of the portion of assets involved in the account that was acquired prior to your marriage. This is why it is vital that you keep a record of all contributions made to your retirement accounts.

Dividing Texas Retirement Assets

When it comes to retirement assets considered community property in a Texas divorce, you and your spouse will need to reach an agreement on how this division will occur. This division must allow for fair distribution between the two spouses.

In cases where both spouses are high earners, you may each have your own retirement accounts that are more or less of equal value. In this case, you may not need to divide individual accounts and rather just lay claim to your own.

However, in cases where one spouse was the main earner of the marriage, there is a better chance that the retirement accounts will need to be split.

There are several different types of retirement accounts that can be involved in a property division in Texas. These include:

• IRAs. These are personal retirement accounts that come with plenty of tax benefits. An IRA might be a traditional or a Roth, each coming with its own set of tax implications.
• Pensions. These are typically retirement plans sponsored by employers in which the employer promises a set benefit to the employee upon retirement.
• 401(k)s. These are also typically sponsored by employers and allow both the employee and the employer to make financial contributions.

When it comes to retirement accounts, different kinds of accounts have specific requirements that come into play when dividing the held assets in a divorce case. If you do not follow these requirements, there are certain tax implications that you can face.

At the Walke-Wilson Firm, we can help you take the necessary steps to divide the following kinds of retirement assets:

• IRAs. The simplest retirement account to divide in a divorce is an IRA. You are able to make a tax-free transfer from one spouse’s IRA to the other in a divorce. However, in order to do so, you must ensure that your divorce decree outlines the details of how these accounts will be divided.
• Pensions. When it comes to dividing a pension, a QDRO, or a qualified domestic relations order, will prove necessary. It is important to keep in mind that all distributions to the spouse of an employee with a pension will only begin once the employee themselves is eligible to receive distributions rather than at the time the divorce is finalized.
• 401(k)s. When a 401(k) is sponsored by an employer, it will require a QDRO to direct the account manager in the transferring of funds into an IRA account created in the name of the employee’s spouse.

If you have a claim to a retirement account not listed here, the team at the Walke-Wilson Firm is still able to work with you to help you understand the right course of legal action to take for your situation.

The Role of QDRO in Divorce

One of the most crucial tools at your disposal in a division of retirement assets is a QDRO. This is a legal document that allows retirement assets to be divided without the typical implications that may happen with an early withdrawal. At its core, a QDRO creates the legal right of a spouse to receive an amount of the other spouse’s retirement plan.

Speak With a Divorce Lawyer Serving The Woodlands and the Surrounding Areas Today

When facing divorce, dividing property can be confusing and often leaves couples with more issues than common ground for a solution. There can be a lot at stake in these situations, especially when retirement assets are involved, and having an attorney on your side is vital. Contact the offices of the Walke-Wilson Firm today to learn more about our services and to schedule your initial consultation.