Division of Assets in Military Divorce in Texas

Sanchez & Farrar PLLC > Division of Assets in Military Divorce in Texas

A puzzle piece of a house showing division.

If you are going through a divorce and either you or your spouse has served in the military, the division of assets may differ from a standard civilian divorce. In Texas, community property laws dictate that assets and debts acquired during the marriage are divided equitably. The division of property and debt takes on new dimensions when military pensions and benefits come into play. These matters require a knowledgeable legal professional who understands both Texas law and the specific rules governing military families.

If you are dealing with a military divorce in Texas and need assistance with asset division, contact Sanchez & Farrar PLLC. Our committed team of military divorce attorneys in Austin and New Braunfels are ready to help you achieve a fair distribution of marital property and safeguard your financial future. 

Call us today at 512-379-6985 to schedule a free consultation and begin your journey towards peace of mind.

Understanding Property in Texas: Community and Separate Property

Division of assets in Texas divorce follows community property law—meaning that assets and debts acquired during marriage are shared fairly upon divorce. Texas law requires that judges split the marital property in a manner deemed just and right. As Texas residents, military personnel must adhere to the community property statutes that govern Texas divorces, with the reminder that certain military retirement pay and benefits are subject to special considerations.

Separate property refers to items owned before marriage, inherited assets, and personal gifts that remain with the original owner after divorce. Texas law recognizes these as individual property, distinct from marital assets. This distinction is crucial for the military spouse, protecting assets that are solely theirs. It requires proof that must hold up in court to ensure these possessions stay separate from the marital estate.

Examples of Community Property:

  • Income earned by either spouse during the marriage
  • Real estate purchased during the marriage
  • Retirement accounts and pensions accrued during the marriage
  • Debts incurred during the marriage, such as credit card debt or loans

Examples of Separate Property:

  • Property owned by either spouse before the marriage
  • Inheritances received by either spouse during the marriage
  • Gifts given to one spouse during the marriage
  • Personal injury awards received by one spouse during the marriage (excluding awards for lost wages)

Understanding these categories and the specific rules that apply to military divorces is essential for ensuring a fair division of assets. It is in this process of asset division, in Texas law, where the experience and knowledge of Sanchez & Farrar PLLC truly stand out. Our team fights to ensure that a divorce asset division is handled with the care and attention you deserve. We guide clients through the complications of legal residence, property division, and the Texas Family Code, especially concerning military divorce in Texas.

Division of Military Benefits

A couple fighting over a stack of bills.When it comes to dividing military benefits in a divorce, several key areas are considered to ensure a fair distribution:

  • Military Pensions and Retirement Pay: These are long-term benefits earned by service members during their military career, which can be divided between spouses in a divorce.
  • Health Insurance (TRICARE): This is the healthcare program for military personnel and their families, providing medical coverage during and after service.
  • Thrift Savings Plan (TSP): A retirement savings and investment plan for federal employees and military members, similar to a 401(k), which can be divided in a divorce.
  • Survivor Benefit Plan (SBP): This is an insurance plan that provides ongoing income to a service member’s spouse or children after the service member’s death.

These benefits are divided to acknowledge the contributions and sacrifices made by both spouses during the marriage. The division aims to provide financial stability and ensure that both parties can maintain their standard of living post-divorce. Understanding the division of military benefits requires a depth of legal knowledge, and having an experienced divorce attorney can help manage these complications to achieve a fair outcome.

Military Pensions and Retirement Pay

Understanding military pensions and retirement pay can be quite difficult, with the USFSPA (Uniformed Services Former Spouses’ Protection Act) playing a key role. This act allows the non-military spouse to receive a portion of the service member’s retirement pay. Typically this portion can be up to half of the retirement pay earned during the marriage. This division reflects the mutual support and shared experiences throughout the service member’s career.

Dividing these pensions has its own set of rules. The state where the service member legally resides has the authority, and within this legal framework, the pension division is calculated. For those who have supported their service members through their career, understanding this process is essential to ensure a fair outcome.

Health Insurance and TRICARE

During a military divorce, health insurance can be a significant concern. TRICARE, the primary health coverage for military families, can continue to cover the non-military spouse if the marriage lasted at least 20 years with overlapping military service. This ensures continued medical care even after the divorce.

For those who do not meet the requirements for TRICARE, the Continued Health Care Benefit Program (CHCBP) is available. This program provides an alternative to maintaining health benefits after the divorce. It highlights the importance of healthcare continuity, even when the marriage ends.

Thrift Savings Plan (TSP) in Military Divorce

A Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services, including the military. It is similar to a 401(k) plan offered by many private employers. The TSP provides a way for service members to save for retirement through contributions from their pay, which can be matched by the government in some cases. The plan offers various investment options, allowing participants to choose how their money is invested based on their retirement goals and risk tolerance. A thorough knowledge of a TSP is essential during a military divorce, as it often represents a significant portion of the marital assets that need to be equitably divided.

In a military divorce, the Thrift Savings Plan (TSP) requires a specific court order called a Retirement Benefits Court Order (RBCO), which is different from the more common qualified domestic relations order (QDRO). This process needs to be handled carefully and with a good understanding of the rules.

To make sure the division is done correctly, a court can freeze the TSP account, protecting its assets until the divorce is finalized. The non-military spouse can receive up to 50% of the marital share of the TSP, recognizing their contribution during the marriage. We at Sanchez & Farrar PLLC can provide valuable guidance in drafting the necessary court documents to ensure a fair division.

Servicemember Protections Under Federal Law

As the defenders of our nation, service members are granted protections under the Servicemembers’ Civil Relief Act (SCRA), which helps them avoid legal distractions during active duty. In the context of divorce, the SCRA allows for the postponement of proceedings to ensure that military duties are not interrupted by legal matters.

The Act also provides service members with extra time to respond to divorce petitions and the option to delay hearings until they return from deployment. These provisions ensure that service members can focus on their responsibilities without being overwhelmed by personal legal issues.

Child Support and Custody in Military Divorces

When a military family faces divorce, child support and custody arrangements must be adjusted to meet the unique demands of military service. Texas law provides the guidelines for these decisions, taking into account factors like deployment and base transfers. The goal is to ensure the financial and emotional well-being of the children involved.

Flexibility is essential in this process. The changing nature of military life means that child support and custody arrangements must be adaptable to the service member’s duties and relocations. For military parents, balancing their responsibilities to their country and their family is of utmost importance.

Calculating Child Support

Child support is calculated using a formula based on state guidelines and the unique aspects of military life. In Texas, the courts look at the servicemember’s base pay, as well as allowances and special pay that can change with deployments and assignments. This ensures the support is fair and reflects the service member’s financial capacity.

At Sanchez & Farrar PLLC, we understand the challenges involved in calculating child support for military families. Our team is adept at analyzing the servicemember’s base pay, allowances, and special pay to ensure a fair and accurate calculation. We work diligently to ensure that child support reflects the service member’s financial capacity while safeguarding the child’s well-being.

Custody Arrangements During Deployment

Military duty often leads to deployment, adding more layers of complications to custody arrangements. The Texas Family Code and the SCRA work together to provide the flexibility needed to adapt custody orders to service demands. These temporary measures ensure that the child’s best interests remain a priority, even as the military parent fulfills their duties.

Deployment can introduce unique challenges, such as long periods of absence and the need for frequent relocations. To address these issues, custody agreements often include provisions for virtual visitation, allowing the deployed parent to maintain regular contact through video calls and other digital communication methods. This helps to preserve the parent-child bond despite physical distance.

Additionally, custody arrangements may need to account for the unpredictability of military schedules. Flexibility is key, with contingency plans in place to handle sudden deployments or changes in duty stations. This might involve designating a trusted family member or friend to step in temporarily or adjusting visitation schedules to accommodate the service member’s availability.

Ensuring that the child has a stable and supportive environment is paramount, and custody agreements are tailored to meet these needs while respecting the service member’s commitments. It’s important to understand that a military parent’s service does not reduce their parental rights. Whether deployed or stationed abroad, their role in their child’s life is respected and maintained through carefully crafted custody agreements that address the unique challenges of military life.

Contact Us for Guidance on the Division of Assets in Military Divorce

A military couple arguing.As the journey through the challenges of military divorce unfolds, the guidance of Sanchez & Farrar PLLC stands as a beacon of support and guidance. Our team of divorce attorneys offer clear and effective strategies that address all aspects of military life. Our founding attorney, a retired lieutenant colonel in the U.S. Air Force Reserve, brings firsthand military experience to the table, offering tailored strategies that account for every facet of military life.

Our first-hand experience in both state and federal laws, along with our dedication to clear communication, makes us the perfect partner for achieving fair outcomes. From dividing military pensions to understanding the SCRA, we are prepared to handle all related issues, offering the legal support that our military families deserve. With Sanchez & Farrar PLLC by your side, you can trust that your case will be handled with the utmost professionalism and care.

If you or a loved one are facing the challenges of a military divorce in Texas, don’t go through it alone. Reach out to Sanchez & Farrar PLLC for dedicated and compassionate legal assistance. Our team is committed to helping you secure a fair and just division of assets, ensuring your financial future is protected. 

Call us today at 512-379-6985 to schedule a free consultation and take the first step toward peace of mind.

Frequently Asked Questions

What protections does the Servicemembers’ Civil Relief Act offer during a military divorce?

The Servicemembers’ Civil Relief Act offers protections such as postponement of divorce proceedings, extra time to respond to divorce petitions, and the option to request a delay of hearings until return from deployment. It aims to provide support for active-duty military service members during divorce proceedings.

How does military housing allowance factor into asset division in a military divorce?

Military housing allowances, such as the Basic Allowance for Housing (BAH), are considered part of a service member’s income. During a divorce, this allowance may be factored into calculations for spousal support and child support. The court will look at the totality of the service member’s compensation, including BAH, to ensure a fair division of financial responsibilities.

Can deployment affect the timeline of divorce proceedings in Texas?

Yes, deployment can affect the timeline of divorce proceedings. Under the Servicemembers’ Civil Relief Act (SCRA), a service member can request a stay or postponement of the proceedings if their duties prevent them from participating. This ensures that the service member can focus on their responsibilities without being disadvantaged in the divorce process.

How does Texas handle jurisdiction issues in military divorces?

Jurisdiction in military divorces can be complicated due to frequent relocations and deployments. Generally, Texas courts will have jurisdiction if the service member or their spouse resides in Texas or if the service member is stationed in Texas. Establishing residency and jurisdiction is crucial for the court to have the authority to make decisions regarding divorce.

Can a military spouse receive alimony in Texas?

Yes, a military spouse can receive alimony, also known as spousal maintenance, in Texas. The court will consider various factors, such as the length of the marriage, the financial needs of the requesting spouse, and the ability of the other spouse to pay. The goal is to provide financial support to the lower-earning spouse to help them transition to single life.

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