How do retirement plans get divided? Usually the judge will divide them equally between the parties.
A number of factors can affect the value of a retirement plan (income taxes, penalties for withdrawal, etc.) and dividing the plans down the middle avoids those issues. On the other hand, the judge will always approve an agreement of the parties whether it involves an equal division of the plans or not.
Sec. 7.003. DISPOSITION OF RETIREMENT AND EMPLOYMENT BENEFITS AND OTHER PLANS. In a suit to end marriage or annulment, the court shall determine the rights of both spouses in a pension, retirement plan, annuity, individual retirement account, employee stock option plan, stock option, or other form of savings, bonus, profit-sharing, or other employer plan or financial plan of an employee or a participant, regardless of whether the person is self-employed, in the nature of compensation or savings.
After a long marriage most of us will have retirement benefits that will have to be divided. In particular because we are a military town its very common. As an experienced San Antonio Divorce Lawyer I understand how complicated this can be even if the grounds for breakup are adultery, or spousal abuse dividing the retirement benefits is always an emotional roller coaster. From my office at 1807 San Pedro, San Antonio, Texas 78212, I offer free consultations 7 days a week.