You don't have to earn an enormous amount of money for property division to become complicated in a divorce, but when complex assets are involved, the risk of an unfair settlement may be higher.
Pamela Anderson-Rick Saloman divorce highlights tax issues
TV fans in Texas may be interested to learn about how in the settlement of a heated divorce case between Pamela Anderson and Rick Saloman, the former "Baywatch" star received $1 million from her ex-husband. During the divorce proceedings, Anderson made allegations about tax evasion on Saloman's part. They were first married for two months in 2007 before seeking an annulment. The couple remarried in 2013 for the second time. Anderson sought divorce from Saloman in 2014.
Understanding some potential tax liability issues after a divorce
Texas residents may be interested in some information on one potential tax pitfall that divorcing couples might face. This generally comes up when one of the spouses is in charge of the couple's taxes and finances.
Works produced by artist part of marital assets in divorce
Texas artists who are divorcing may not realize that their artwork may also be considered part of the community property of their marriages. While payments agreed upon or artwork produced prior to marriage or after separation are not included as part of marital property, all other artwork may be. This applies to filmmakers and writers as well as visual artists and may apply to other people who produce creative work as well.
Personal injury awards and Texas property division
People who are preparing to divorce in Texas and who have pending personal injury cases may want to carefully plan in order to best protect any expected settlements or awards. As a community property state, Texas generally presumes personal injury proceeds to be community property unless the spouse is able to show by clear and convincing evidence that the award is separate property.
The division of property in a divorce
Couples who are preparing to divorce often have questions regarding how they might expect their assets and obligations to be divided. As a community property state, Texas views all of the marital or community property of the couple to be jointly owned. The community property is thus in most cases subject to equal division between the two spouses.
How QDROs are drafted is important
In Texas and around the country, qualified domestic relations orders are used to divide up pension benefits. A QDRO is intended to provide for two different circumstances, each of which mandates the order be drafted in a different way in order to give it its intended effect.
How inheritances may be divided in a divorce
Individuals in Texas who are divorcing and negotiating property division may also have to deal with inheritances received by one or both spouses. While inheritances technically belong to the person to whom the inheritance was directed, commingling these assets can cause complications.
How is property divided in Texas?
As a community property state, all property deemed to be marital property is split evenly between divorcing spouses in Texas. Not all property owned by one spouse or the other will be considered to be marital property, however. Some types of property are considered separate and are thus excluded from the property division order.
Avoiding financial disaster after a divorce
Divorcing couples in Texas might do well to take some time to assess their finances so they can avoid some of the typical pitfalls involved in marital property division. Each spouse's financial needs will affect the division of assets in the divorce. If one spouse needs cash in the immediate future, he or she can request assets in the divorce decree that are easy to liquidate. Spouses who do not need instant cash have more flexibility in negotiations because they can accept retirement plans, mutual funds, stocks and other investments that take longer to cash out.
