If you're married and considering a divorce, you are likely giving some thought to which property and assets will remain with you and which will go to your spouse.
Couples in Texas who are getting a divorce and who own a home will need to divide it, but they should beware of some common pitfalls in doing so. For example, some people will fight to keep the house without realistically considering whether they can afford it. This was the case for one woman who spent six months negotiating to keep the home before realizing a better solution was to sell it and split the proceeds.
When going through a divorce in Texas, it is important to properly divide retirement accounts. To split a 401(k) or similar account, a qualified domestic relations order (QDRO) will need to be drafted. The order will then be approved by a judge and reviewed by a plan administrator before the money can be transferred out of the account. Usually, only contributions and appreciation that occurs after the marriage begins is split in a divorce.
One of the more common issues for divorcing couples in Texas is determining which party receives the marital home. Though retaining the home can often be financially advantageous, there are a number of factors to consider.