Texas § FA.3.007 - PROPERTY INTEREST IN CERTAIN EMPLOYEE BENEFITS

§ FA.3.007. PROPERTY INTEREST IN CERTAIN EMPLOYEE BENEFITS

PROPERTY INTEREST IN CERTAIN EMPLOYEE BENEFITS. (a) Repealed by Acts 2009, 81st Leg., R.S., Ch. 768, Sec. 11(1), eff. September 1, 2009. (b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 768, Sec. 11(1), eff. September 1, 2009. (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: (A) the numerator is the sum of: (i) the period from the date the option or stock was granted until the date of marriage; and (ii) if the option or stock also required continued employment following the date of dissolution of the marriage before the grant could be exercised or the restriction removed, the period from the date of dissolution of the marriage until the date the grant could be exercised or the restriction removed; and (B) 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 following the date of dissolution of the 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: (A) the numerator is the period from the date of dissolution of the marriage until the date the grant could be exercised or the restriction removed; and (B) 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 (f) Repealed by Acts 2009, 81st Leg., R.S., Ch. 768, Sec. 11(1), eff. September 1, 2009. Added by Acts 2005, 79th Leg., Ch. 490 (H.B. 410 ), Sec. 1, eff. September 1, 2005. Amended by: Acts 2009, 81st Leg., R.S., Ch. 768 (S.B. 866 ), Sec. 1, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 768 (S.B. 866 ), Sec. 11(1), eff. September 1, 2009.