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.
Many Texas pet owners would be devastated if they were to be separated from their companion animals, and some divorcing spouses use this kind of emotional attachment as leverage during negotiations over property division. Disputes over dogs, cats or other pets are becoming more common in divorce cases, and many family law attorneys are now incorporating clauses about pet visitation and custody in prenuptial agreements.
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.
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.
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.
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.
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.
Texans may be interested in the outcome of a divorce case between a man who made his fortune in the oil industry and his wife of 26 years. The wife, who filed for divorce in 2012, is appealing a court's judgment awarding her nearly $1 billion in the divorce settlement of her case.
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.
Texas is a community property state, and almost all property that is acquired by either spouse during their marriage is divided equally once they divorce unless the parties otherwise agree. If the court determines that one spouse is to pay the other alimony, these payments may affect the property division ordered by the court. The court will look at a number of factors to determine whether and how much spousal support to order.