FAQ: How Are Assets Divided in a Texas Divorce?
Quick Answer: In a Texas divorce, retirement accounts, military retirement, bank and investment accounts, brokerage accounts, and stocks are all subject to division by the court—no matter whose name is on the account.
Texas is a community property state, which means that most assets acquired during the marriage are presumed to belong equally to both spouses. However, determining what’s community property and what’s separate property can be complex, especially in high-asset or long-term marriages.
At The Ashmore Law Firm, our experienced family law attorneys help clients navigate property division, protect their rights, and ensure fair distribution of marital assets.
What If You or Your Spouse Owned the Account Before Marriage?
If one spouse owned an account prior to marriage but contributed to it both before and during the marriage, the court will divide it into two parts:
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The portion earned before the marriage is that spouse’s separate property.
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The portion earned during the marriage is community property and can be divided by the court.
However, the spouse claiming separate property must prove the amount owned at the time of marriage by clear and convincing evidence. If that evidence is unavailable, the court will presume the entire account is community property.
If Your Spouse Is in the Military, Are You Entitled to Part of Their Retirement Pay?
Generally, yes, if you were married for at least 10 years during which your spouse was actively serving in the military.
Division of military retirement benefits can be complex and is governed by both Texas family law and federal law (USFSPA). The non-military spouse may be entitled to a portion of retirement pay, even if the service member is not yet retired.
It’s crucial to work with an attorney who has experience handling military divorces to ensure your rights are protected and the necessary federal orders—such as a Qualified Domestic Relations Order (QDRO) or Military Pension Division Order (MPDO)—are properly drafted and filed.
Are You Entitled to Your Spouse’s Deferred Compensation or Bonuses?
In most cases, yes, but only for the portion that was earned during the marriage. Deferred compensation, stock options, or bonuses that were accrued while married are generally treated as community property and subject to division.
What If You Believe Your Spouse Wasted Marital Assets?
A waste claim can be included in your divorce pleadings if you believe your spouse misused or dissipated community assets without your consent.
Examples of waste include:
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Excessive spending on gambling, luxury items, or affairs
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Large, unexplained withdrawals
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Hiding or transferring marital funds before filing for divorce
If the court finds that waste occurred, the judge may award you a disproportionate share of the remaining assets to compensate for the loss.
More to Consider: Retirement Benefits and Valuation
Dividing retirement benefits can be one of the most complex parts of a Texas divorce. Disputes often arise over:
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How to value the account
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What valuation date should apply
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Whether existing loans should be deducted from the non-employee spouse’s portion
These issues must be addressed and finalized before the Final Decree of Divorce is signed. The Qualified Domestic Relations Order (QDRO) that follows will reflect these terms. If they are left out, it can be difficult or impossible to negotiate them later.
Why You Need an Experienced Family Law Attorney
Dividing assets during a divorce is rarely simple—especially when significant assets, retirement plans, or military benefits are involved. An experienced family law attorney can:
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Identify and characterize community vs. separate property
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Protect your financial interests during negotiations
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Draft and review QDROs or other division orders
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Handle complex valuation and tracing issues
Speak With an Experienced Divorce Attorney in Dallas
If you’re facing a complex divorce or have questions about dividing assets, contact The Ashmore Law Firm today.
đź“ž Call us at 214.559.7202 or contact us online to schedule a consultation.
We proudly represent clients throughout the Dallas area in divorce, mediation, and asset division cases.
