Protecting Your Fair Share of Retirement Savings
If a large portion of marital assets is invested in stocks and retirements accounts, dividing those accounts during a divorce requires counsel from experienced attorneys and financial experts. Determining who retains ownership of these complex assets is not a job for an attorney who is new to family law.
At The Law Office of Gary L. Nickelson, our divorce attorneys each have decades of experience focused exclusively on family law. Led by board certified attorney and family law expert Gary L. Nickelson, the firm is widely respected in Fort Worth and throughout Texas for its ability to take on complex divorce cases.
How Are Retirement Plans Divided in a Texas Divorce?
Sophisticated retirement accounts may include 401(k)s, IRAs, stock options or deferred compensation plans. During a divorce, the court will divide those accounts, usually giving each party half of what was put into the accounts during the marriage.
The presumption in Texas is that all marital property is community property. If you believe otherwise, you must prove that an asset is separate. The burden lies with you to prove by clear and convincing evidence that the property is solely owned by you. We can assist you with gathering documents and providing tracing evidence.
It is also important to consider the tax liability of each type of account. For example, 401(k)s and IRAs may have lower values than stocks or cash because of the accounts’ tax implications. In most cases, it makes sense to give the spouse in the lower tax bracket more of the taxable assets. To avoid penalties in the event of early disbursement of retirement funds, we can request that the court issue a Qualified Domestic Relations Order (QDRO).
Contact An Experienced Divorce Attorney
Working with respected financial and tax experts, we will advise you on the best options for the division of retirement accounts. To make an appointment, please call us at 817-735-4000 or complete our contact form.