Military retirement benefits (the Uniformed Service Retirement System), may be divided in a Texas divorce. Military retirement plans also do not have to comply with ERISA.
You can estimate the size of a military retirement plan with the following formula: (Number of Years Served) x (2.5%) x (Average Monthly Pay)
No more than 50% of retirement pay may be awarded to non-military spouses. Additionally, only funds contributed to military retirement accounts during a marriage are considered community property. If an individual was married for 5 years of his 20 year service, only one quarter of his pension would be eligible for division. Ultimately, his spouse would likely receive approximately 1/8th of its total funds.
For federal railroad retirement plans, participants need to determine whether they are eligible for tier-1 or non-tier-one benefits. Tier-1 benefits act as a replacement for Social Security benefits. As a result, they are ineligible for division in a divorce. Non-Tier 1 benefits do not function as a replacement for Social Security and can be divided in your divorce. Railroad employees often have additional non-federal retirement plans, like 401(k)s, that must be divided upon divorce. Railroad retirees should also consider division of any divorced spouse annuities. These benefits may be awarded to non federally-employed spouses.
DROs (Domestic Relations Orders) or QDROs (Qualified Domestic Relations Orders) are not strictly required to divide IRAs or annuities. However, even if you are able to divide these benefits with a domestic relations order, completion of a DRO may avoid a 10% penalty.
It is important to remember that each retirement plan may contain unique requirements governing division in the event of divorce. Experienced family law attorneys will be familiar with ways to collaborate with plan administrators, avoid roadblocks, and ultimately expedite the retirement division process. Contact us today if you’re ready to explore your options.
Retainer fees and cost estimates cause anxiety for many family law clients. Most of the time, this is the fault of lawyers. We do things differently. At Walters Gilbreath, PLLC our cost structure...read more
To celebrate the one-year anniversary of our podcast, Jake & Brian sat down with Jim Piper, Of Counsel at Walters Gilbreath, to discuss how family law has changed since they started practicing. J...read more
Submit the form below and a member of our intake team will contact you.
Brian and his staff were great. Brian’s direction and expertise provided me with the legal information relevant for my needs over several years now. He listens and is steadfast which gave me comfort in the courses of action. I highly recommend him.Brian and his staff were great. Brian’s direction and expertise provided me with the legal information...
Larry M.view all reviews