If you are getting divorced in Texas, you may wonder what will happen to the money in your retirement accounts. Generally, you have three options, though special rules apply to military pensions and Social Security benefits.
Divide the money
You and your spouse may decide to divide the money equally. Your soon-to-be ex-spouse may even have the option to take their share of the pension money as a lump sum payment. The judge will issue a Qualified Domestic Relations Order telling the company holding the pension how to distribute the funds. This is a separate document from your divorce decree.
Replace with other processions
You and your spouse can work out an agreement where they will not touch the money in your pension account. Instead of giving them that money, you give them other marital property things, such as the family home. Remember that your pension is valued at its net worth on the day your divorce is finalized as are other assets in your marriage. Since Texas is a community property state, any assets acquired during a marriage are marital property and must undergo property division.
Get a postnuptial agreement
Spouses can also choose to enter into a postnuptial agreement This agreement, which is like a prenuptial agreement but signed after a couple is married, spells out what assets belong to who in the event of a divorce Couples who want to avoid judges deciding what happens to their assets may want to enter into these agreements as judges usually follow what the couple agrees on in writing Still, it is possible that they can overrule them.
There are many ways that you can divide pensions during a divorce in Texas.