Texas couples who file their federal income tax returns jointly do so for many reasons, but separate filings could be beneficial to those who are in the middle of a divorce. Couples who have separated may have already split their finances or property assets, for instance, and in such cases, it might simply be easier for each individual to file on their own.
Divorce is already difficult enough when a couple has to separate and two families have to split. If there is a business involved, a couple will have to decide whether to keep it going as it is. While some people have no problem continuing to run a family business after a divorce, some splits are so contentious that this is not possible.
A complicated international divorce case unfolding in Texas demonstrates the importance of where and when a person files for divorce. A couple who are residents of Texas but citizens of Pakistan are now arguing over which place has jurisdiction in deciding the financial arrangements in their split.
For people who own real estate such as a vacation home, divorce can be particularly complicated. In Texas, community property consists of assets and debts acquired during the course of the marriage. If real estate was purchased in that time, or if the property was acquired before the marriage date but the value increased while the couple was married, then the value of property may be subject to division.
IRAs can be helpful tools for Texas residents who are planning for life after retirement. However, people who use their IRA carefully may leave some funds in such an account at the time of their death. There are various options in leaving an IRA to one's heirs, but an inherited asset could be vulnerable in case of a beneficiary's divorce or in other situations that cause outside parties to have an interest in an heir's inheritance.
Some Texans who are ordered to pay alimony to their ex-spouses work in jobs that require early mandatory retirement. While the national retirement age is currently age 67, some professions require people to retire at much younger ages, such as age 55.
Texas residents may have heard about the divorce that formally ended the marriage between actors Melanie Griffith and Antonio Banderas in 2015. After being married for just under two decades, the couple stated in June 2014 that they were splitting up amicably and were beginning the process of dividing their wealth and assets.
Texas couples who are divorcing must divide financial assets such as retirement accounts. How these accounts get divided depends upon a number of factors including what type of accounts they are. Individuals must fill out paperwork to avoid tax penalties, and an individual IRA requires a transfer incident. For 401(k)s and employer-sponsored funds, a Qualified Domestic Relations Order is necessary.
When a couple with high-value assets decides to divorce, each spouse has a lot to lose. Often one of the primary considerations is how the end of the marriage will affect retirement plans.
Texas divorce courts follow community property laws for the division of assets, which means that all debts, property and other assets acquired during a marriage are marital property and equally divided between the spouses upon a divorce. However, special documents and orders, such as prenuptial agreements, could mean that the assets are divided differently. This is why it is important for entrepreneurs to protect their businesses in case of divorce.