In Texas, military benefits division during a divorce involves a distinct set of rules and considerations. This process takes into account the unique aspects of military service while ensuring fair treatment for both spouses. Examine the benefits accrued during the marriage. This ensures that the settlement fairly recognizes and compensates both the military member’s and their spouse’s contributions and sacrifices. By addressing these specific factors, military benefits division aims to achieve a balanced and just outcome for both parties.
It would be ideal for your lives to be led without strife or hardship, but unfortunately, that can’t always be the case. Hardship can arrive at the foot of your door in the shape of a divorce. Today’s blog topic from the Law Office of Bryan Fagan, PLLC, is on the subject of dividing retirement benefits in a military divorce.
Military Retirement Benefits in a Nutshell
Unless you have researched the topic, you may not fully understand what is included in the retirement benefits you or your spouse have earned through military service.
Throughout your working lives, you may have accumulated a variety of financial accounts that contain money that you can utilize in retirement. 401(k) accounts, Individual Retirement Accounts (IRA), and pensions are just a few types of retirement plans available to people.
We will not go over each of these today, but it is a good idea to read into each of them so you can be aware of how each can impact you both in divorce and retirement.
What if Your Spouse Has the Retirement Plan in Their Name- Do You Get Credit for Having Saved Money?
To answer this question, we will examine whether the contributions to the retirement account were made before or after your marriage date.
If your spouse contributed the money before your marriage, Texas law considers these contributions their separate property, not subject to division in your divorce. Conversely, contributions made to a retirement account after your marriage date count as community property and are subject to division in your divorce.
Texas law, similar to its approach with bank accounts and income deposited during marriage, does not factor in whose name is on the retirement account or the money’s contributor.
The determining factor for credit allocation is the deposit timing, not whose name is on the account or the source of the deposits. Therefore, retirement accounts can be a mix of both community and separate property.
Does the Length of Your Marriage Have Anything to Do With Your Ability to Access Retirement Benefits in Divorce?
A lawyer’s favorite answer to give anyone when asked a question is: “It depends.” That response applies to the question I posed in the title of this section. We will need to examine the retirement account that is relevant to your case.
When you consider an IRA or 401(k), then the length of your marriage does not affect if the account is divisible in your divorce. However, a judge does not have to split these accounts straight down the middle. A just and right division of community property is the standard with which a judge would divide up any community property in your case- retirement accounts included.
An example to illustrate this point is if you and your spouse married later in life after your spouse had already contributed twenty years’ worth of income into her employer’s 401(k). Unfortunately, after only one year of marriage, you filed for divorce from your spouse.
In this situation, your spouse owns the first twenty years’ worth of retirement contributions as their separate property, and these are not subject to division in your divorce. However, the final year’s retirement savings qualify for division. Yet, a judge may not necessarily grant you a portion of it. Instead, they might award you other sums of money equivalent to the retirement account’s value, thus keeping the retirement savings undivided.
When it comes to pension plans, military retirement benefits, and social security benefits, there are different rules on how the length of your marriage can affect your eligibility to receive a portion of retirement funds upon divorce.
How Can You Find Out Whether or Not Your Spouse Even Has Any Retirement Benefits Saved?
Did you and your spouse rarely, if ever, discuss financial matters like retirement during your marriage? If so, then you can count yourself among the many, many Americans who are in the same boat as you. With the hurried pace of our day-to-day lives, it is not uncommon to focus on other, more pressing issues than down-the-road topics like retirement.
If you are contemplating a divorce, it’s important to review your spouse’s paycheck to determine if deductions are being made for a retirement plan. If your spouse is a member of the military, then it is likely that their pension will send out periodic statements to your home and have a notation on each paycheck with the amount stated, which goes to their pension fund.
In conclusion, military benefits division in a Texas divorce requires careful attention to the unique nature of military service and the contributions of both spouses. By understanding the specific rules and considerations involved, both parties can protect their rights and ensure a fair distribution of benefits. With the guidance of an experienced attorney, individuals can navigate the complexities of dividing military benefits and secure a settlement that acknowledges the sacrifices made by both the military member and their spouse.
The Law Office of Bryan Fagan, PLLC.
Thank you for showing an interest in this vital topic. In the meantime, if you have any questions about this topic or any other in the field of family law, please do not hesitate to contact the Law Office of Bryan Fagan, PLLC. Consultations with our licensed family law attorneys are free of charge and are available six days a week.
Questions about the material contained in today’s blog post? Contact the Law Office of Bryan Fagan
If you have any questions about the material contained in today’s blog post, please do not hesitate to contact the Law Office of Bryan Fagan. Our licensed estate planning and probate attorneys offer free of charge consultation six days a week in person, over the phone, and via video. These consultations are a great way to learn about the world of probate law and how the filing of a probate case may impact your family circumstances.
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Bryan Fagan, a native of Atascocita, Texas, is a dedicated family law attorney inspired by John Grisham’s “The Pelican Brief.” He is the first lawyer in his family, which includes two adopted brothers. Bryan’s commitment to family is personal and professional; he cared for his grandmother with Alzheimer’s while completing his degree and attended the South Texas College of Law at night.
Married with three children, Bryan’s personal experiences enrich his understanding of family dynamics, which is central to his legal practice. He specializes in family law, offering innovative and efficient legal services. A certified member of the College of the State Bar of Texas, Bryan is part of an elite group of legal professionals committed to ongoing education and high-level expertise.
His legal practice covers divorce, custody disputes, property disputes, adoption, paternity, and mediation. Bryan is also experienced in drafting marital property agreements. He leads a team dedicated to complex family law cases and protecting families from false CPS allegations.
Based in Houston, Bryan is active in the Houston Family Law Sector of the Houston Bar Association and various family law groups in Texas. His deep understanding of family values and his professional dedication make him a compassionate advocate for families navigating Texas family law.
