A divorce will impact almost every area of life, and retirement plans are no exception to that. As the end of a marriage will certainly bring significant financial changes, it is important to consider how this will affect your plans for the future, especially if you are close to retirement age.
Understanding the process of dividing marital property in a Texas divorce is the first step toward securing a final settlement that allows you to have a strong post-divorce future. It may require an adjustment to your plans for retirement, but it is still possible to have a prosperous future and enjoy your golden years, even after a divorce.
Pursuing your fair share of long-term savings and other marital assets
In addition to the state laws that could impact the division of retirement savings, there are certain federal regulations that could affect how much you get and how certain accounts are distributed. As you pursue your rightful amount of savings, consider the following factors:
- A QDRO, or qualified domestic relations order, is necessary in order to complete the division of most types of retirement accounts.
- QDROs require total attention to detail, or they may affect the outcome.
- In some cases, it may be possible to negotiate or mediate in order to obtain your desired outcome to retirement savings concerns.
- The division of military pensions is different from other types of retirement accounts.
- All marital assets are subject to equitable division, even if the retirement account is only in one spouse’s name.
It does not matter whose name is on the account or which spouse contributed more to that particular retirement fund, if the savings were accumulated over the course of the marriage, you have a rightful claim to a portion of them. Whether you were a stay-at-home parent or are a high-income earner, it is critical to protect your long-term financial interests.
Your life after divorce
Whether you have decades to go before retirement or you are fast approaching this important milestone in life, your lawyer can help you fight for an outcome that will leave your dreams and plans for the future intact. What happens in a divorce affects the rest of your life, but with the right help, you can move forward toward a happier, more stable future.