Prosper Retirement Account Division Attorney

Divorce Lawyer for Dividing 401(k)s, IRAs, and Pensions in Collin County

Dividing marital assets in a divorce has an immediate impact on each spouse's financial situation, and it can also have repercussions well into the future. This is especially true when the spouses have substantial retirement savings that must be divided. You should be sure to understand how your divorce will affect your retirement assets so you can adjust your plans accordingly and follow the appropriate procedures to divide the different types of retirement accounts you may have.

At Pfister Family Law, we understand that your retirement savings are some of your most important assets, and we can help you protect them. We will represent you in negotiations or litigation so that you can hold onto as much of your retirement assets as possible. We will also help you understand and navigate the complexities of dividing IRAs, 401(k)s, pensions, and any other retirement accounts so that you do not suffer unnecessary losses in the process.

Separate and Community Retirement Assets in Texas

According to Texas law, retirement contributions made during a marriage are generally considered to be community property, regardless of which spouse owns the account. This means that both spouses have a claim to the assets, and they must be addressed in the division of property. However, you may have retirement accounts that were funded entirely before your marriage, in which case those would likely remain your separate property. If you have a retirement account with contributions made both before and during your marriage, you will likely be able to claim ownership of the premarital portion. Thorough documentation of your retirement contributions can help you protect any separate property during the divorce process.

Dividing Your Retirement Accounts

For community retirement assets, you may be able to reach an agreement with your spouse that allows for a fair distribution without the need to divide individual accounts. For example, in a high net worth divorce when you and your spouse have both been earners, you may each have your own retirement accounts that are roughly equal in value. However, if one spouse was the primary earner, it is much more likely that you will need to split up an account.

Different types of retirement accounts have different requirements when it comes to dividing assets for a divorce. If you do not follow these requirements, you will likely have trouble accessing your assets, and you can also face tax consequences and early withdrawal penalties that greatly reduce the assets available to both spouses. We can help you take the appropriate steps to divide the following types of accounts:

• IRAs - An IRA is perhaps the simplest type of retirement account to divide, as you can make a tax-free transfer incident to divorce from one spouse's IRA to the other's. In order to do so, you should be sure that your divorce decree or judgment spells out the details of how the account should be divided.
• 401(k)s - Dividing an employer-sponsored 401(k) requires a Qualified Domestic Relations Order (QDRO) directing the account manager to transfer a portion of the funds to an IRA in the name of the employee's spouse.
• Pensions - A QDRO is also necessary to divide a pension, though distributions to the employee's spouse will begin when the employee becomes eligible for distributions, rather than at the time of the divorce.

If you have a retirement account other than one of these, we can work with you to understand the best course of action for your personal situation.

Contact a Prosper, TX Retirement Asset Division Lawyer

We can help you address any concerns that you may have about your retirement assets throughout the divorce process. For an initial consultation, contact us today at 972-954-6455. From our office in Prosper, TX, we serve clients throughout Collin County, Dallas County, Denton County, Tarrant County, and the surrounding areas, including Dallas, Prosper, Plano, McKinney, Denton, Little Elm, and The Colony.