Wealthy couples who are getting a divorce may learn from the example of Amazon founder Jeff Bezos and his wife. Like Texas, Washington is a community property state, and this means that since Bezos started the company after the two were married, he and his wife may split Amazon stock 50/50. However, this would change if they made an agreement at some point in their marriage about how to split property in a divorce.
The owners of private companies in Texas generally need to disclose their business assets when negotiating divorce settlements. Because the business likely represents a significant asset, its value could play a large role in the division of the marital estate. The ex-spouse who owns the business may need to provide a cash settlement to the other party based on the business's value. The valuation could also influence the calculation of child or spousal support.
With the divorce rate between 40 and 50 percent in the United States, Texas couples often wonder what they can do to prevent their marriage ending in divorce. While there are many reasons why couples go their separate ways, one of the major stressors in marriage can be the couple's finances. There are ways that couples can work toward counteracting the negative effects that finances might have on their marriage.
Division of assets is one of the most critical steps in many Texas divorces. The marital home, vehicles and business interests might be points of contention as they can be worth a lot of money. Retirement accounts, too, can be among the most valuable assets that a couple has developed, and dividing them between the parties can be contentious.
As the effective date for new legislation regarding alimony and taxes approaches, Texas couples who are seeking a divorce and negotiating a settlement might be concerned with completing the process before January 1st, 2019. Alimony, which could previously be deducted by the payer and reported by the receiver, will no longer count as a deduction for the payer. This means that in some cases the payer will find themselves in a higher tax bracket than before, while still having to pay alimony. However, if the agreement is finalized before the effective date of the changes, the divorce can be grandfathered in with the old legislation applied.
Taxes are often far from the minds of divorcing spouses in Texas during the process of dissolving a marriage, but taxes can present themselves with unexpected costs in time for those who are unprepared. Kiplinger has published findings by a tax attorney that show some divorcing spouses may face higher taxes with changes in the various laws regarding payments for alimony and child support after a divorce.
Someone who is filing for divorce in Texas must be aware of the possibility that their spouse may attempt to conceal assets during the process. If the concealment seems especially shady, one might consider paying private investigators to discover what their spouse is up to.
Older Texas couples considering divorce may be particularly concerned about how ending a marriage later in life could affect future retirement. No matter a person's age, divorce can be an emotional and financial challenge. While custody and child-rearing are often the biggest issues for younger ex-spouses, divorce presents its own challenges for older couples. It's especially difficult for those who have been married for many years and have deeply intertwined finances.
When people in Texas get a divorce, taxes may be one consideration when it comes to property division. However, because of the Tax Cuts and Jobs Act, there are some additional changes ahead that people should be aware of.
People in Texas who decide to divorce may realize that the financial effects of the end of a marriage can be far more long-lasting than the emotional and practical aspects of the split. Indeed, many people planning for divorce feel intense stress about how their finances will change. However, by reviewing their assets, liabilities, income and expenses, people can make a plan for their post-divorce financial future that can help to improve their peace of mind moving forward.