When individuals in Texas and elsewhere get married, they are unfortunately faced with the thought that this may not work out. No one likes to think about divorce or a relationship failing, but with the divorce rate in the nation still hovering around 50 percent, it is important to consider this as a possibility. Whether a marriage has lasted only a few years or several decades, the wealth brought into the marriage as well as the wealth accumulated during the marriage needs to be addressed during the dissolution of a marriage.
How are retirement assets split in a divorce? Retirement accounts can be a hot topic in the divorce process, especially in a wealthy divorce. This often makes up a notable portion of one’s wealth and, in some cases, this portion of wealth could be split between the spouses.
For the most part, retirement assets are treated like other marital property. Therefore, unless a prenuptial or postnuptial agreement dictates otherwise, a spouse is entitled to a portion of these accounts. It is important to note that some retirement accounts can hold significant value, and with that, tax implications. This could result in one or both spouses dealing with a wide array of financial issues when sorting through and assessing retirement accounts.
It is also imperative to understand how each retirement account is different and could be treated differently in the dissolution process. Financial and legal experts could help one understand how to work through property division while also protecting his or her rights along the way.
A high asset divorce can get complex. There are many factors to consider, and a full financial assessment is necessary. Thus, it is important to have a good legal understanding of the matter and what rights one has. This helps ensure a fair and timely divorce agreement is reached.