Texas Family Code - Section 3.007. Property Interest In Certain Employee Benefits
Legal Research Home >
Texas Lawyer > Family Code > Texas Family Code - Section 3.007. Property Interest In Certain Employee Benefits
§ 3.007. PROPERTY INTEREST IN CERTAIN EMPLOYEE
BENEFITS. (a) A spouse who is a participant in a defined benefit
retirement plan has a separate property interest in the monthly
accrued benefit the spouse had a right to receive on normal
retirement age, as defined by the plan, as of the date of marriage,
regardless of whether the benefit had vested.
(b) The community property interest in a defined benefit
plan shall be determined as if the spouse began to participate in
the plan on the date of marriage and ended that participation on the
date of dissolution or termination of the marriage, regardless of
whether the benefit had vested.
(c) The separate property interest of a spouse in a defined
contribution retirement plan may be traced using the tracing and
characterization principles that apply to a nonretirement asset.
(d) A spouse who is a participant in an employer-provided
stock option plan or an employer-provided restricted stock plan has
a separate property interest in the options or restricted stock
granted to the spouse under the plan as follows:
(1) if the option or stock was granted to the spouse
before marriage but required continued employment during marriage
before the grant could be exercised or the restriction removed, the
spouse's separate property interest is equal to the fraction of the
option or restricted stock in which the numerator is the period from
the date the option or stock was granted until the date of marriage
and the denominator is the period from the date the option or stock
was granted until the date the grant could be exercised or the
restriction removed; and
(2) if the option or stock was granted to the spouse
during the marriage but required continued employment after
marriage before the grant could be exercised or the restriction
removed, the spouse's separate property interest is equal to the
fraction of the option or restricted stock in which the numerator is
the period from the date of dissolution or termination of the
marriage until the date the grant could be exercised or the
restriction removed and the denominator is the period from the date
the option or stock was granted until the date the grant could be
exercised or the restriction removed.
(e) The computation described by Subsection (d) applies to
each component of the benefit requiring varying periods of
employment before the grant could be exercised or the restriction
removed.
(f) The characterization of the marital property interest
in an option or restricted stock described by Subsection (d) must be
recalculated if, after the initial division of the option or stock,
the vesting occurs on a date earlier than the vesting date stated in
the original grant of the option or stock. The recalculation
required by this subsection must adjust for the shortened vesting
period and applies to options and stock granted before and during
the marriage.
Added by Acts 2005, 79th Leg., ch. 490, § 1, eff. Sept. 1, 2005.
Section: 2.501 3.001 3.002 3.003 3.004 3.005 3.006 3.007 3.008 3.101 3.102 3.103 3.104 3.201 3.202
Last modified: August 11, 2007
|
