Taxes are one of many things that will change for people in Texas who get a divorce. The switch from filing as married to filing as single or as head of household, if there are dependents, and the move to a new tax bracket happens in whatever calendar year the divorce occurs. Therefore, if an annulment, separation or divorce is finalized on or before the final day of 2017, when the person files taxes for that year, the filing status will have changed. An annulment introduces the additional complexity of needing to amend previous years' tax returns to indicate that both people were not married at the time.
In a divorce, marital property division is generally negotiated in a manner that is equitable to both sides. However, not all assets are equally valuable. For instance, Texas residents may feel like keeping a marital home is worthwhile because it means not having to move. However, it also means retaining responsibility for maintenance and upkeep as well as other costs related to owning a home.
Federal employees are likely to have a Thrift Savings Plan, which replaces the common 401(k) used in the private sector. Like other retirement plans, a TSP can be affected by the asset division process of a Texas divorce. It is important for those considering a divorce to understand how the law may impact their money and finances.
When Texas couples divorce, both can expect to experience changes in their financial situation. In some cases, these changes are temporary, although there are some situations in which one or both parties will have to make long-term adjustments to their budgets. Women are often the ones who have to do so.
For many Texas residents, owning their own business may be a dream come true, especially if it turns out to be successful. However, if the business was started before a marriage, what was once sole property could become a shared marital asset. To ensure that the person who started the business maintains ownership of it in the event of a divorce, it is recommended that he or she sign a prenuptial agreement.
When Texas couples decide to get divorced, one of the first questions they must tackle is property division. Shared property might include family homes, investments and other assets they have acquired during their marriage. The division process may involve negotiating retirement plans and other investments the couple made while they were married.
Texas family structures are adjusting to new lifestyles and socioeconomic trends. The concept of the nuclear family is giving way to blended families formed by new dynamics of marriage, divorce and remarriage. Blended families feature stepparents, stepchildren and step-siblings due to circumstances such as divorce and custody agreements.
An appeals court in Texas has ordered a retrial for the owner of World Environmental and partly reversed the decision of a lower court in a case involving payments the owner owes to his ex-wife. Originally, his former spouse was awarded $361,040 in damages, $25,000 in attorney's fees, and $2,500 related to the abuse of the evidentiary discovery process. The court found that he had failed in his fiduciary duties toward his ex-wife and that he was in breach of contract.
As many Texas residents have found, one of the major conflicts that can arise in a divorce negotiation is the fight over a couple's assets. It can become so complicated that it can lead to the destruction of the financial health of both parties since it can be drawn-out and costly. However, it does not have to be this way.
Texas residents who are planning a divorce or have already started the process will eventually also have to divide their property. This might be complicated and slow-moving, particularly when the couple has a lot of financial assets to divide.