Upon closing in on the golden years of life, a substantial portion of a couple’s wealth could be tied up in retirement or investment accounts. Should a couple in Texas make the decision to divorce, these accounts may play a significant role in the process of property division. Since there could be dire consequences to dividing retirement accounts without the necessary documentation, a person might find it advisable to seek guidance early in the process.
When it comes to dividing retirement assets, a person must ensure the process is handled properly. Failing to take the necessary precautions could bring about a variety of potentially devastating consequences, such as tax fees or penalties. For instance, with pension plans or a 401(k), a person must obtain a qualified domestic relations order before attempting to transfer the funds.
With other retirement accounts, such as an IRA, one must obtain a divorce decree to avoid fees and penalties. In addition, a person must also ensure these assets are divided in accordance with the terms of the decree. Following a divorce, one may also wish to update accounts with new information, and it is also advisable to wait until the process is finalized before making any modifications.
When facing a divorce, a person may wish to take every available precaution to protect his or her financial future. With numerous crucial aspects to consider during a potentially stressful life event, an individual could benefit from speaking with an attorney for guidance in the early stages. An attorney can help a client in Texas gain a better understanding of what to expect from the process and assist him or her in preparing to pursue a favorable outcome during legal proceedings.