It is important for people in Texas who are going through a divorce to make sure that their future retirement is protected. Although experts generally advise that people should save enough to live on around 70 percent of their income prior to retirement, the financial ramifications of divorce can often mean that many people struggle thereafter to keep their retirement plans on track.
As many Texas residents may know, alimony has implications for income tax. Both the payer and the payee need to indicate the amount he or she paid in alimony and the amount that was received. Beyond that, it is necessary to provide the Social Security number of the other party on one's tax return, without which a penalty may be assigned. If the divorce settlement specifies that any payments are not alimony, then they are not considered alimony when filing income tax.
Texas residents may be interested in a study that looks at how serious illness of one spouse can affect a marriage. The results suggested that couples were more likely to divorce when the wife became ill, as opposed to the husband.
Texas residents who are seeking a divorce may be interested in some alternatives to litigation for resolving their disputes. While the court usually has the final word, the parties may be able to take their situation in their own hands to get a more fair outcome.
Many Texas residents may be surprised to learn that the widespread assertion that half of all marriages will end in divorce has not been true for many years. A statistical analysis of divorce rates in the country instead demonstrate that the rates have been on a steady path of decline since the 1980s.
When a divorce in Texas is finalized, a judge will enter a divorce decree. The items in the decree may have been determined by the judge overseeing the case or the couple may have come to their own divorce agreement. If the couple comes to an agreement on their own, the judge will ask them some basic questions before entering the decree into the court's records.
Although a divorce may be an emotional time in an individual's life, nothing should be overlooked from a financial standpoint. Making mistakes such as underestimating cash flow needs or the impact of joint liabilities can stunt a person's efforts to live a financially secure life after the marriage has ended. It is also important to look over prior tax returns to determine if any tax assets need to be considered in a divorce settlement.
Married or soon-to-be married couples in Texas can take heed from this example of a divorcing spouse challenging an 11-year-old prenuptial agreement. The agreement stipulated that the wife would receive a one-time payment of one percent of the husband's assets in the event of divorce. The wife has filed to overturn the agreement and proceed with routine property division under Illinois state law. At the same time, she filed for sole custody of their three children and relocation rights. Her specific charges against the prenuptial agreement's validity may be worth the attention of Texas couples.
When two people decide to get married in Texas, they may not be considering a prenuptial agreement. However, according to a recent article, the documents are apparently gaining in popularity, suggesting that many individuals wish to protect their rights and their separate property.
A recent divorce dispute involved a husband who wanted half of an inheritance his wife had received from her grandfather's estate two years before. This type of situation is not uncommon in a divorce, and different circumstances may apply from one divorce case to another. An important distinction is legally made between separate property, which is not divided, and marital property, which is divided.