One of the more complicated issues that divorce lawyers guide their divorcing clients through is property dispersal, most specifically those involving retirement benefits.

Family law firms often see misunderstandings between spouses on who is entitled to what in terms of retirement benefits, which can result in strained negotiations.

With the help of an experienced family law specialist and the understanding of a few simple points, negotiations on retirement benefits can be easy and stress-free.

What Assets Are Classified As Retirement Benefits?

When negotiating a divorce, lawyers refer to assets like stock options, retirement savings plans, pensions, and IRAs as retirement benefits.

Additionally, family law firms must also consider social security benefits, certain military benefits, and some other assets earmarked for dispersal after retirement and according to their own specific rules when helping their clients negotiate retirement benefits during a divorce.

Are Retirement Benefits Considered Marital Property?

In a community property state like Texas, lawyers must classify retirement benefits as part of the marital estate that is subject to division according to community property rules.

As with all other property owned by divorcing spouses, any benefits that were a spouse’s personal property before marriage remain their personal property.

Benefits earned or saved by either spouse after marriage are classified as marital property and must legally be divided between the two during a divorce.

An experienced family lawyer can help spouses identify and calculate assets that are considered marital property for easier dispersal.

It should also be noted that, just as with other community property dispersals, if spouses cannot agree on the distribution of their retirement funds and the issue must be decided by a judge, there is no guarantee of a 50/50 distribution.

Spouses remain most in control of their retirement benefits by working together with the guidance of an experienced law firm that can help them each receive a fair share of the total benefits.

Can Spouses Dictate How Retirement Benefits Are Dispersed?

Yes, spouses getting divorced on good terms have a high degree of control over who gets what concerning retirement benefits.

Family law firms often see spouses agreeing to allow each other to keep whatever retirement funds they each have accumulated during their marriage so that no other division is required.

Family lawyers may also assist spouses with some creative methods of dividing these assets, including cashing out benefits by giving the other spouse cash in exchange for the whole asset or by negotiating the dispersal of other marital property or assets.

Seek Help From An Experienced Family Law Divorce Firm

Retirement benefits are considered marital property in a Texas divorce and are thus subject to the same community property rules as any other marital assets.

A family divorce law firm can help identify which assets are considered personal property and which must be divided as community marital property.

Family law firms find that spouses amicably working through a divorce can often come to their own agreements on how to distribute their retirement benefits.

In more complicated cases or when there is disagreement between the spouses, an experienced divorce lawyer can facilitate negotiations so that community property laws are observed and each spouse receives a fair share of the couple’s accumulated benefits!

Reynaldo Garza, III - Attorney at Law

680 East St. Charles St, Suite 600
Brownsville TX 78520

956-300-2260

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