Spouses rarely contribute the exact same amounts to their retirement savings efforts. Spouses who earn more often set more aside than those who work in lower-paid positions.
Those who expected to fully share retirement savings in their golden years may worry about whether they can afford retirement based on their own savings or may fear that splitting an account evenly with a spouse could leave them at a fiscal disadvantage as they prepare for retirement.
Do spouses generally need to split all retirement savings accounts evenly in a Texas divorce?
Uneven splits are common
A 50/50 property division outcome is not always fair and appropriate. Texas state statutes allow spouses and the courts to deviate from a 50/50 split of property when an even split might prove unfair.
When looking at the distribution of retirement savings, in particular, key considerations include the income and separate assets of both spouses, the duration of the marriage and other details about their economic circumstances.
Spouses may need to divide their individual retirement savings accounts to reach a fair property division settlement. However, they do not necessarily need to divide each account in half. They can potentially even reach arrangements where they each retain their own retirement savings and then address discrepancies through the allocation of other marital property and debts.
Setting clear priorities early in the property division process can make it easier for people to preserve key resources when they divorce. Retirement accounts can be difficult to address fairly, making a thorough financial review with a skilled legal team critical for those concerned about 401(k)s and similar resources during a divorce.
