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June 2018 Archives

Property division during a Texas divorce

When couples in Texas plan to divorce, the financial repercussions of the end of the marriage can often be equally or even more profound than the emotional complications. The division of marital property can lead to significant changes in how both former partners live their lives. It is important to understand how property division works in a divorce, especially because Texas is only one of nine states across the country that uses a community property system to divide assets after a split.

How divorce may effect finances in retirement

Some Texas women may want to consider keeping the home in a divorce even though this is not the advice usually given by financial professionals. The reason they advise against it is that it may be financially impossible to afford the home. A woman may be able to pay the mortgage but might struggle with the additional costs of maintaining the home including upkeep, insurance, taxes and utilities.

The process of getting child support that is owed

When parents in Texas and other states get divorced, one person may be granted custody of the children while the other individual is ordered to pay child support. If a parent fails to pay support as ordered, he or she could be put in jail. Other common penalties for failing to pay child support include the loss of a driver's license or passport and wage garnishment.

About non-custodial parents

Parents in Texas who have not yet resolved their child custody arrangements may be concerned with being appointed as the non-custodial parent, or the parent who has no physical custody of their children. Many myths about child custody ignore the fact that non-custodial parents can be given legal custody and are active participants in the upbringing of their children.

What to do when noncustodial parents claim to be poor

Some noncustodial parents, in an effort to avoid paying child support, choose to live in poverty. They may rely on unreported freelance work to make ends meet and contribute less than their fair share to their children's expenses. The Texas child support enforcement system takes this kind of behavior very seriously. The first step for a custodial parent to take is filing for a formal child support order.

Public assistance applicants get help collecting child support

Parents who live in separate homes may struggle to manage their finances while also taking care of their children. Public assistance is designed to bridge the gap between what parents can pay themselves and what they need to cover various necessities. When a single parent in Texas applies for public assistance, the state typically attempts to recover the money it spends from the absent parent.

Maximizing tax savings for divorcing couples

As a result of the Tax Cuts and Jobs Act, alimony for future Texas divorcees will no longer be treated as a tax deduction. The rule will apply for future separation agreements starting in 2019. This historic change reverses the legislation enacted in 1942 that permitted tax deductions for alimony and ongoing spousal financial support.