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.
Insurance can be one of the last things people think about when getting a divorce, but both spouses should review all of their insurance policies and make any necessary changes to them. When a divorce involves children, the divorce agreement may state that the non-custodial parent must provide health insurance for the children. The agreement could also require that one spouse set money aside to cover the other's health insurance premiums.
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.
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.
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.
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.
Spouses may benefit from learning more about how property division is handled for divorces that occur in Texas. The court considers the rights of both parties, as well as the best interests of any children involved, when it comes to the division of the estate.