Fort Worth, Texas Divorce Law Blog

When people in Texas decide to divorce, they may face a range of personal, emotional and practical concerns. Some of the most important changes that can come with the end of a marriage are the financial effects of property division, especially when it comes to retirement accounts. An increasing number of people across the country are divorcing at the age of 50 and up, meaning that the division of retirement accounts has become more complex. This may be especially true for people who are already receiving distributions from their accounts.

In most cases, dividing an individual retirement account, or IRA, is essentially straightforward. The growth and additions to retirement funds during the marriage are generally considered part of community property, and IRAs, unlike 401(k)s and other employment-associated plans, do not require a specialized court order called a qualified domestic relations order to complete the distribution. Some concerns may arise when people are already taking 72(t) distributions from an IRA. These are distributions from the plan taken before the age of 59.5, usually taken due to financial problems or early retirement. These distributions can be subjected to regular income taxes as well as a 10% tax penalty, which may need to be considered during divorce.

When people in Texas decide to divorce, the process can be deeply emotional. However, the practical side of divorce, particularly the financial aspects, can linger on long after the emotional issues have been resolved. After a divorce, it is possible to recover and rebuild financial security and well-being. However, people can act in advance to protect themselves and prepare themselves for any potential future. When both spouses are involved with money management on a daily basis, this can prevent the confusion and problematic decision-making that can follow a divorce or even the death of a spouse.

According to one study, 80% of people who had not been deeply involved in their financial planning while married regretted that choice after their divorce. In addition, people with less financial experience also found it more difficult to rebuild their assets after the end of a marriage. Forty percent said that they were still working to recover financially from the split.

Some parents in Texas who are going through a divorce might find a calendar useful during the process of determining custody and support. A calendar can provide a lot of information about parenting time and expenses that might otherwise be forgotten or overlooked.

A parent may be asked many questions about his or her child's schedule, health and other things. It can be hard to remember these details during the stress of the divorce process, but they can be important. For example, one expense parents often forget about is the birthdays their children go to and the cost of gifts. Parents may often forget about times their children traveled out of town for sports events and the costs associated with them. If a child has a therapist or doctor, these expenses should be included as well. The calendar may also help parents get a better idea of how much time their children spend with each of them, which can also be useful data in calculating custody and support.

Many Texas residents have experienced some of the challenges that come with divorce. Alimony adds another layer of complication. There is a lot of confusion about what alimony is, who is eligible to receive it and who may be required to pay it. A clearer understanding of the different kinds of alimony can make the situation easier to understand.

By basic definition, alimony is a form of spousal support. It may be granted when a legally married couple separates or gets a divorce. The idea is to help the partner who earns less money keep the same standard of living they had before they split from the higher-earning spouse.