Can I Keep My Retirement Benefits After Divorce in Texas?

 Posted on April 14, 2025 in Property Division

During the divorce process, you will need to identify assets and liabilities and categorize them as marital or separate property. Unfortunately, divorce and retirement benefits do intersect during proceedings. Retirement benefits can include 401(k) accounts, IRAs, pensions, deferred compensation accounts, and more. If you have concerns about what will happen to your accounts during divorce, a Denton, TX asset division attorney can explain how Texas law may impact your case.

Are Retirement Benefits Always Marital Property?

Texas is a community property state, which means that the value of assets acquired or contributed to during the marriage belongs to both spouses. In general, marital assets and liabilities, meaning debts, are divided equally. This concept applies to retirement benefits as well.

Any contributions made to retirement accounts before you were married will usually remain your separate property, but your contributions during the marriage would qualify as community property, even if your name alone is on the account. Similarly, if your spouse has retirement accounts, all contributions made during the marriage would belong to both of you. Ultimately, this means that you may have retirement accounts that are both separate and marital property.

Does the Length of Marriage Matter?

Sometimes, how long you were married plays a role in the division of retirement benefits. For example, most retirement savings accounts, such as a 401(k), will be divided regardless of the length of your marriage. However, the court does not have to split these types of accounts evenly.

Certain types of retirement plans have different rules regarding when you can receive funds and whether or not you are eligible to receive them at all. These include pensions, military retirement plans, and Social Security. If you have any of these accounts, you would benefit from speaking to an experienced attorney about how your divorce will impact them.

Can You Protect Your Retirement Benefits?

Some people are worried that their spouses will try to waste or hide assets once they realize that their spouse is filing for divorce. Fortunately, Texas standing orders typically go into effect in most counties when you file for divorce, stopping the involved parties from withdrawing funds from retirement accounts. When this is not available, you can file a temporary restraining order with similar terms. Disobeying these orders could result in a jail sentence.

Ways you can keep your retirement benefits after divorce include:

• Coming to an agreement with your spouse in which you each keep the accounts that are under your names

• Offering your spouse cash for their share of your retirement account’s value

• Agreeing to exchange other marital property for your spouse’s share of your retirement accounts

A retirement account is typically valued based on its projected worth as of the final divorce date.

Contact a Denton County, TX Divorce Attorney for a Free Consultation

At The Law Office of Linda Risinger, we have practiced divorce law in Texas for over 30 years. We are well-versed in Texas family law and are always focused on getting the best results with cost-effectiveness in mind. Call 972-294-6533 to schedule a free consultation with our Denton, TX asset division attorneys today and learn more about how we can make the divorce process easier for you.