Community Property

budget at home
If there’s one thing that ruins relationships, it’s money. That’s simply one of the first things couples—whether married or not—talk about when they start living together. It’s always a case of “who will pay for what,” and finding the right balance for the both of you. Are you moving in with your partner soon? Then you should start taking notes on how you can divide the expenses—for the sake of your future home and your relationship. Split your accounts and work out the percentage you’ll give Keeping your accounts separate is still the best option in any relationship. This will make it easier for couples to control their own earnings and avoid conflicts that come with having a joint account. What you need to do and agree to a certain percentage to allot to your housing needs while, of course, being considerate of how much you make individually. But let’s say you decide to put aside 30 percent of your salary for bills and necessities. Once that’s set, you have to commit to that. Recognize who makes more and who makes less This is in relation to the previous point. One should acknowledge if they are making more or lesser than their significant other. That way, you can pinpoint which expenses will fit your salary—whether it’s paying for the electricity, water, Wi-Fi, or buying groceries. That said, you still have to follow the allotment percentage you’ve agreed on. Again, it’s all about finding a balance in taking care of your home. Save, save, save When you’re done dividing tasks and expenses, you have to get along in this category. Saving money is key to living together. If you are spending too much on unnecessary things and not keeping your part of the agreement, this will cause problems in the long […]

How to Divide Expenses at Home when Both of You are Working

A Quick Guide to Divorce
  Texas Divorce Overview   Everyone іѕ fаmіlіаr wіth the wоrd dіvоrсе but dоеѕ not know thе technicalities about it. It is іmроrtаnt thаt wе should bе able tо knоw things about dіvоrсе аnd whаt are thе thіngѕ thаt wе ѕhоuld соnѕіdеr about when people аrоund us or ѕресіfісаllу uѕ іnѕtеаd are planning tо еngаgе into thіѕ kіnd оf situation. Yоu ѕhоuld fіrѕt know whаt rеаllу dіvоrсе іѕ tо have a dеереr perception about this dіѕеаѕе іn thе community that іѕ not only ruіnіng thе lives оf the husband and wіfе but аlѕо thе реорlе thаt аrе іnvоlvеd in thе marriage, tоо. Aссоrdіng tо Wikipedia, “Dіvоrсе (оr the dіѕѕоlutіоn оf mаrrіаgе) іѕ the fіnаl termination of a mаrіtаl union, саnсеllіng the lеgаl dutіеѕ аnd responsibilities оf mаrrіаgе аnd dissolving the bonds оf mаtrіmоnу bеtwееn thе раrtіеѕ.” It is іmроrtаnt that we ѕhоuld bе able tо know thаt dіvоrсе іѕ not just mеrе breaking up but also hаvіng a permanent separation with the person thаt уоu have married. A divorce fоllоwѕ a ѕеt of court hеаrіng іn which they would dіѕсuѕѕ all thе thіngѕ thаt a mаrrіаgе controls, from thе kids to the fіnаnсеѕ would bе a ѕubjесt mаttеr in a divorce. Yоu ѕее, іt wоuld rеаllу bесоmе ѕо complicated for you and уоur fаmіlу tо ѕіnk іn to this “solution”, if іt іѕ a ѕоlutіоn аftеr all or mау trigger to ruin аll the реrѕоn’ѕ lіvеѕ thаt аrе іnvоlvеd in the ѕіtuаtіоn.   Whаt аrе thе common grоundѕ fоr having a dіvоrсе?   First of аll, іt would bе hаvіng аn extra mаrіtаl аffаіr. Thіѕ іѕ very соmmоn because аlmоѕt 1/4 оf a 100 оf those who dіvоrсе thеіr ѕроuѕеѕ hаvе this рrоblеm аnd they cannot take anymore whаt іѕ hарреnіng so thеу decide to have thеіr marriage divorced. Second […]

Texas Divorce Overview

There are a lot of things that you might be sure of right now, but one thing you will never be able to prepare for what to do during or after a divorce. It’s not only the emotional toll that would weigh on you after deciding to go through divorce – you have to think about your children, your properties and assets, how to tell your families, etc. There are so many things that you have to do, all while with a heavy heart. You can’t expect everything to just fall into place, you have to work through it all to get where you want to be.  IRAs Let’s focus on the part where you divide properties and assets, or to be more specific, the IRAs. Individual Retirement Accounts (IRAs) are investments to prepare you for the future. It can be classified into two:  Traditional IRA – wherein you deposit a part of your income into the plan tax-free up until the time you will be encashing it in the future. Only then would the future tax rate be subtracted from your total investments. ROTH IRA – on the other hand, allows your investments to be taxed annually before being settled in your account so that when you encash it in the future, there would no longer be taxations because your money already went through it before. If you anticipate that tax rates will be higher in the future, then it is better to opt for a ROTH IRA than a traditional one. IRAs and Divorce If you invested in IRAs during your marriage, it would most likely fall on the category of shared assets, which would then be divided equally in court. However, if only one spouse has an IRA, then the transfer of investment would be a little […]

What You Need to Know About IRAs and Your Divorce

pet divorce
It goes without saying that a divorce comes with many considerations and if you have pets in a Texas divorce, you might be worried about their fate. One of the most devastating things that come along with divorce is separation. One parent would have to live separately from the children and the other spouse in most cases. Pets such as dogs and cats are part of the family and it’s difficult not to have an emotional attachment to them. However, when it comes to a divorce, the harsh reality is that they are classified as property. As property, these pets will be in the same category as your house, television, jewelry, bank accounts and other properties. As it is with other properties you have at the time of the divorce, the pets will need to be awarded to one spouse. You can talk and have an agreement about the fate of your pet, otherwise, the judge will have to decide on what to do with your pets in court. The thing is: since pets are considered a part of your property, they will be treated either as separate property or community property. The judge will not make a decision based on your family’s or pet’s best interests, and would just be following the law. If you are worried about your pets in a Texas divorce, it is better to reach an agreement with your spouse to avoid getting the judge to make the decision for your family. Here are some frequently asked questions about pets in a Texas divorce. You might also have these questions running through your mind right now and the following information might be useful. 1. How is your pet treated as property? As already mentioned above, pets and animals, in general, are considered as property as per […]

The Fate that Awaits Your Pet in a Texas Divorce

Marriage helps in reducing the tax burden for husbands and wives who jointly file their taxes. Depending on their incomes, there is a way to avoid the known marriage “penalties.” If there is a substantial difference in the salaries of the spouses who are both taxpayers, the spouse paying for the lower tax can pull the spouse paying higher tax down into a much lower bracket than if the latter were to file taxes separately. This reduces the spouses’ overall taxes. Below are some tax advantages of married couples in Texas. 1. The spouses might be the tax shelter of each other The spouse who uses money can’t take advantage of some deductions. These deductions include those with regard to the house. However, the spouse who makes money can use the loss and consider it as a tax write-off.  2. The nonpaying spouse can have an Individual Retirement Account A spouse who is not working may contribute to an individual retirement account (IRA). The limit at which the benefits of the IRA are phased out, on the basis of income, is higher for married couples than for single people. Someone who could not pay into an IRA when they were single can utilize the joint income to fund an IRA and possibly save thousands of dollars for retirement while receiving tax benefits that are substantial. 3. Couples may “benefit-shop” If benefit packages are given to both spouses from their respective jobs, they can choose from the two plans the one that has the most valuable benefits. The right combination of benefits from the plans can increase the tax savings of couples in a lot of ways. For example, if the couple has children who are dependent, then both of them can find the use of the benefit plans like dependent […]

Are there Tax Advantages When You Get Married in Texas?

Divorce in the military is not different as in ordinary marriages. The procedure handled the same by the civilian court. There are things, however, that need to be taken into consideration. Spouses of uniformed personnel have their own set of rights as provided by law. Uniformed Services Former Spouse Protection Act The Uniformed Services Former Spouse Protection Act is a law passed by Congress in 1982 for the ex-spouses of uniformed personnel. This law grants rights over a portion of the retirement benefits of their former military spouse. They should have been married for at least 10 years. This is in accordance with the rules of the proper court of jurisdiction. In order to be qualified in this program, the 10/10 rule should be followed. The service member must have served for at least 10 years. The part of the ex-spouse should be taken from the disposable retired pay of the military. This is the gross salary pay of the military fewer deductions.  Military Divorce in Texas A spouse of the military member cannot get a divorce while the latter is on active duty. This is for the protection of the active service member. Division of assets and benefits in military divorce are also the same as civil marriages in Texas. The provisions of the Uniformed Services Former Spouse Protection Act Division is the law that regulates the benefits of spouses. Additional benefits such as health care can be given to former spouses of uniformed personnel if the marriage has been for at least 20 years. Health care should always benefit their minor children though.  Other Forms of Support Child support is a vital consideration of every parent’s decision even in military divorces. Alimony for former spouses of service members does not require a certain length of marriage for it […]

Partition of Benefits Between Divorced Military Couples in Texas

abandoned spouse
Two Types of Divorce in Texas The majority of divorce cases are “no-fault” divorces. In a no-fault divorce, the two parties simply have “irreconcilable differences” or could not get along. The other type of divorce is “fault-based” divorce, which means there is a shortcoming on one party or has aggrieved the other party, based on legal grounds. One example of those legal grounds is abandonment.  Definition of Abandonment in Texas Law Abandonment is being left alone to take care of the home and fulfill all parental duties of the child. Texas law has two conditions to constitute abandonment. First, the spouse must have been absent for a continuous period of one year. Second, the spouse made a willing and intentional decision to leave. This leaves off missing persons, or victims of abduction or kidnapping.  This ground of abandonment can be proven in court by presenting testimonies, documents, or letters. Abandonment Affects Child Custody The abandoned parent ends up having added responsibilities. He/she has to deal with the children’s needs: emotional, physical, mental and financial- alone. The main issue is the conservatorship of the children in a divorce on the grounds of abandonment. Conservatorship deals with the fulfillment of the duties and responsibilities of the children as opposed to possession. The parent charged with abandonment will usually lose custody. Abandonment Affects a Spouse’s Share in the Community Property The State of Texas upholds the concept of community property. Both spouses have an equal share of all property acquired during the marriage in a community property regime. However, in cases of abandonment, the court may deviate from the 50/50 arrangement. The innocent parent will naturally have a bigger share because of having custody of the child.

Divorce Due to Abandonment

divorce tax
In 2017, US Congress passed the Tax Cuts and Jobs Acts. This made significant changes to an individual’s income tax rates in various brackets, and also reduces rates for corporations. The law took full effect in Jan. 1, 2019, and it’s affecting several sectors in the state—especially families that are going through divorces. Contractual alimonies are common among couples in Texas. Before the new tax law was passed, this meant that the higher-earning partner would have to deduct alimony payments according to their tax rate. While the lower-earning partner pays tax based on their tax based on the gross amount of the alimony received by the high-earner. However, it’s also important to note that any alimony paid from a final order before January 2019 will still be taxable to the payee and deductible by the payor. That said, what do ex-spouses need to know about dealing with their tax situations during and after their divorce? Take note of the pointers below. While in the process of divorce Before TCJA was passed, Texas couples could choose whether they can file joint or separate taxes. If they were married on or after Dec. 31, 2018, they are now required to file joint tax returns. This is important to remember because couples still need to pay this until the judge officially grants their divorce. Of course, couples can choose to file separately so they won’t have to deal with any issues with their soon-to-be ex-spouse’s tax returns. Divorce attorneys can also help in managing how to deductible costs from the couple’s alimony (if they have one). Especially with the new law which might make the process more expensive and difficult. This is also a great time for couples to agree on settlements on real estate and other joint properties they may have. They […]

How to Deal with Taxes During and After a Divorce?