It's only natural to wonder what the likely outcome of your divorce proceedings will be, especially when it comes to significant assets. From your house to your fine art collection and retirement account, knowing how the courts view and handle various assets makes it easier to understand the likely results of your divorce. Retirement accounts, in particular, may be a point of contention for older couples facing divorce.
]]> Texas looks at when you deposited funds, not the name on the accountWhen it comes to determining if a retirement account is marital property or separate property, the most important guiding factor will be when the funds went into the account. Deposits made prior to your marriage and, potentially, interest on those funds, may end up considered separate property. Anything contributed toward the account after your marriage, however, is likely marital property.
Regardless of who held the account and who contributed more money toward it, the courts will most likely divide the assets or use the value of the account to offset other considerable assets in your divorce. You could end up with half of the amount you were planning on for retirement. Thankfully, so long as the splitting of the account results from a court order, you won't incur tax penalties or fees.
You may find yourself using savings to pay for divorce
Other than home equity, a retirement or investment account often represents one of the biggest assets of your life and your marriage. However, with all the expenses of divorce, you may have no other option but to dip into those funds to pay for your divorce. When that happens, you can reduce the amount of money you have to rely on when you decide to retire.
The lower your retirement savings dip, the more important it becomes for you to reconsider your retirement plans. After all, you expected to pay for one house with twice the assets, and now the same amount will need to cover two separate households for the duration of your retirements. Even if you don't touch your retirement account to pay for the divorce, you will have to adjust your expectations for retirement.
Considering different living situations, such as sharing a home with friends or living with your children, may be a good option. Reducing your plans to travel or continuing to work for a few additional years to rebuild your retirement fun are also solid ways to offset the financial impact of a divorce.
]]>You will have to make similar decisions concerning the business. Will you stay in and try to continue working with your soon-to-be ex-husband? Or are you thinking about selling your half to him and starting your own business? The following are some options that might be available to you in regard to the family business if you plan to divorce.
]]> Keeping co-ownershipIf you choose to stay in business with your husband, you may be in for a few challenges. You will have to maintain a close working relationship with your ex. In order to make this work, the two of you will have to be amiable. However, there are a few benefits of keeping your interest. First, you will not have to worry about hiring an appraiser to value the business. In addition, you get to continue building the business you started years ago.
Buy out your ex
Another option is to buy out your ex's share of the business. To do this, you will have to put the business through the valuation process to determine how much you will have to pay to your ex. You will be able to either pay for his share in cash or trade other marital assets. If neither of these options appeals to you, he may be willing to agree to an installment payment plan where you make payments over time. On the other side, he might prefer to buy you out.
Outright sale
If neither of you have any interest in continuing the company you started together, then the two of you can sell the business and split the proceeds. Like with the buy out option, this will involve hiring an appraiser to value the company so that you know how much to sell it for.
If you are considering divorce and own a business, there are several options available when it comes to either keeping or dividing the company. Be sure to choose the route that is best for you and the life you want to lead once you finalize the divorce.
]]>Thankfully, Texas law protects the rights of both parents. Unless there is a history of abuse, the courts typically prefer shared custody arrangements. Other issues, like unstable living situations or addiction, could also impact how the courts approach custody decisions and enforcement of parental rights. In general, sharing parental responsibilities and limiting the impact of the divorce on the children usually means staying in the same area.
]]> Custody and living situations should focus on the children's needsThe courts use the best interests of the children as the guiding principle when deciding on critical custody matters in a divorce. Except in cases of abuse, neglect or inability, that typically means supporting ongoing relationships with both parents.
The courts may weigh in on a variety of topics that impact custody, including how to handle the marital home and issues of child or spousal support. All of these decisions focus on doing what is best for the children, which often means minimizing disruption to their lives. Moving to a new state would not only cut off their relationship with one of their parents, it would completely remove their social support network of peers and nearby family.
The courts needs to approve any out-of-state move
Sharing custody and decision-making authority with your ex means that your ex can't simply pack up and leave. That would deprive you and your children of a healthy relationship and the ability to see one another regularly. The courts may actually outline a limited area, based on county or distance from the marital home, where the children can live to ensure both parents can see the children regularly.
If your ex wants to move farther away that what is outlined in your divorce documents, the courts have to approve. Your former spouse will need to provide a compelling reason to the courts why the move is necessary and in the best interest of the children. Depending on your situation, the courts may refuse to allow such a move. If your ex goes without court approval, your situation may become a case of parental abduction.
It's important to remain calm and focused on the children if your ex wants to move out of state with your children after a divorce. However, it is also important to assert your rights as a parent. If civil discussion fails to resolve the matter, you may need to ask the courts to intervene to prevent a move that would alienate you from your children.
]]>Before you can make decision regarding property division, you have to have a full accounting of what you and your husband own. By leaving out assets, you risk losing out on property that you may rights to. To find out what kinds of assets people commonly overlook, read further.
]]> BenefitsDeferred compensation and retirement plans are common incentives that many employers offer. Even if your husband only worked for a particular company for a few years early in his career, there may be a 401k that you have rights to. Be sure you check for stock options, restricted stock, pension plans, and other benefits that may have been from a previous employer.
Tax carryovers
If you have investment property, such as stocks, you could have a capital loss carryover on prior year tax returns. This loss occurs when capital losses are greater than capital gains, but there is a limit as to how much of a loss an individual or married couple can claim every year. The excess loss then carries into the following years until you are able to use it. For example, if your husband sold stock last year at a $60,000 loss, the most that the two of you could claim on your tax return was $3,000. You would be able to use that loss in future years to offset any capital gains. This means if you had a $10,000 gain for selling stock this year, you could use $13,000 of your prior year loss. This lets you completely offset the capital gain and claim the $3,000 capital loss limit. Be sure you get to claim your share of any prior year capital loss carryovers as part of your divorce settlement.
Cemetery plots
If you and your husband purchased side-by-side cemetery plots, it is likely that you will no longer want to be buried next to him after the divorce is final. Cemetery plots can be valuable, so be sure you account for that in your divorce settlement as well.
Club memberships
Perhaps your husband is an avid golfer who plays multiple rounds throughout the week. He might even have a country club membership that involved initiation fees and requires annual dues. This could also be something valuable that you include in the list of assets the two of you have acquired during your marriage.
Other assets that people commonly overlook include collectibles, lottery tickets, loans made by either spouse and even travel program points. When you start planning for your divorce and listing the assets and property that the two of own, keep in mind that there may be items beyond the money in your joint bank account and the house.
]]>There are certain situations in which both spouses will not have a claim to the marital house. If one spouse owned the home outright before the marriage, the non-owner likely won't have any claim to the home or the equity established in it.
]]> The courts would view the home as individual or separate property not subject to division. This is also true if the marital home was left specifically to one spouse as part of an inheritance. In almost any other situation, the home and its equity will end up divided in divorce.Custody arrangements can impact the asset allocation process
Any court decisions about child custody can impact decisions about the marital home as well. For example, if the custodial parent is able to pay the mortgage and qualify for financing without his or her spouse, the courts may allow the custodial parent to stay in the home. The idea here is to minimize disruption to the lives of the children by allowing them to stay in a familiar space and to attend the same school.
Because the home is community property subject to division, simply being allowed to live there doesn't mean one spouse gets all the value from the home. The spouse who gets the house will refinance the home, cashing out an appropriate amount of equity for the other parent. In some cases, instead of taking equity out of the home, the courts will simply allocate other assets of comparable value to the non-custodial spouse.
Sometimes, neither party gets the keep the house
If there are a lot of marital debts or insufficient other assets to allow for a fair division process with one spouse keeping the home, the courts may order the couple to sell the house. This is actually a very common practice, especially if one spouse can't qualify for the mortgage on his or her own or the mortgage is underwater. If you and your spouse owe more than the home is worth, you may have to sell the home via a short sale by working with your lender.
It can be sad to have to move out of the home you've lived in for years. However, doing so can be part of moving on with your life after a divorce. Instead of grieving, look at this change as an opportunity to make new memories and start building a better life on your own.
]]>Texas is a community property state that tries to find a fair and reasonable way to split assets. Generally, unless there is an existing prenuptial agreement on the books, most assets acquired during the marriage will get split between spouses. Knowing that assets are subject to division can prompt your spouse to do things like needlessly spend money or even try to hide assets.
]]> The courts take a dim view of squandering assetsFinancial records can usually find proof that your spouse intentionally wasted funds or even gave assets to friends and family members to avoid splitting these assets with you. Funds spent on gambling, personal vacations or conducting an affair may also be considered squandered. You may stress when you realize what your spouse is doing, but the courts have seen it all before.
Your financial records can help prove that your spouse was trying to use up assets to avoid sharing them. The courts can then reflect that in the eventual division of assets. These situations are often straightforward, unless your spouse has been planning for the divorce for some time.
When you need a forensic accountant
If, when going over your financial records and assets, you realize there is a substantial amount of assets unaccounted for, you may need help. People have been known to do things like open secret bank accounts or investment accounts in other countries to avoid disclosure and sharing. Others may make a number of smaller cash withdrawals, either directly from the bank or as part of a larger transaction like buying groceries.
A forensic accountant can help determine where every cent of income has gone during your marriage. These highly-educated professionals are your best hope of tracking down secret accounts and creating sufficient evidence to prove that your spouse was stockpiling cash or other assets in preparation for the divorce.
The courts can only divide the assets you can locate
Texas' courts will do their best to ensure a fair and equitable division of assets. The real issue here is that the courts can only divide assets people report to them. In order to ensure that your reported assets are accurate, a forensic accountant can go back through your records for months or even years.
Locating hidden accounts and determining how assets and income were used can help ensure that you receive a fair portion of marital assets. The expense involved in hiring a forensic accountant can very easily end up offset by the hidden assets located during the financial review process.
]]>If you are over 50 and considering divorce, there are several things to know before you even begin the process. While you are probably already focusing on who gets the main residence in Pearland and who gets the beach condo on Galveston Island, there are several factors you may not have thought about yet. Read further to find out more about what you should know when it comes to a gray divorce.
]]> Expect to pay alimonyIn general, courts will grant alimony after long-term marriages. You should prepare yourself for this to be part of the divorce settlement with your future ex-wife. Often, for younger couples, a court will grant alimony for a temporary amount of time, usually while the lower-earning spouse becomes self-sufficient. In situations where the marriage was long term and you are both approaching retirement age, you can expect to pay alimony indefinitely.
You're going to lose half of your retirement
Prepare yourself for watching your retirement accounts and pensions get cut in half. In general, any money that you deposited or contributed directly from your paychecks into retirement accounts or pension funds during your marriage will be marital property in the eyes of the court. That means, in Texas, she will probably get half. If you want to hang on to the retirement accounts, you might be able to swap other assets of equal value. Either way, you are going to have to give something up.
Be prepared to negotiate
Like with your retirement accounts, if you want to keep the main residence, be prepared to say goodbye to other assets. Negotiation is key when it comes to settling out of court, if that is your goal. However, keep in mind, that when you submit your settlement to the court, the judge is going to make sure each of you is walking away with an equal or fair amount of the marital property. Neither one of you will be able to keep everything, so start thinking about what you are willing to let go and what you absolutely have to keep.
There are many other factors you should keep in mind when preparing for a gray divorce. Your attorney will be able to help you through the process and work a settlement that is fair but also protects your interests.
]]>If you weren't expecting a divorce, suddenly living separated from them can be difficult enough. When your spouse files, he or she can request temporary custody until the courts finalize your divorce. You'll receive visitation and a court order for child support. If you're getting denied regular visitation or shared custody while waiting for your divorce, it can be that much worse.
]]> The children come firstPsychological studies make it clear that, so long as abuse isn't a factor, maintaining relationships with both parents is typically in the best interests of a child. Courts definitely consider that when determining custody.
Unless there is concrete evidence of behavior that places the children at risk, the courts will very likely assign shared custody or at least liberal amounts of parenting time to the non-custodial parent. When one parent intentionally violates the best interest of the child as a means to punish the other parent, the courts will take notice of this behavior.
Parenting time and visitation are set via court order
To ensure compliance by all parties, the family courts of Texas issue both child support and visitation or parenting time via court order. Failing to comply with these orders is contempt of court. Just like you could face legal consequences for failing to pay child support, your former spouse could face legal consequences if he or she refuses to comply with parenting time or visitation orders.
Generally, enforcement during the divorce process is complex. The courts are unlikely to hold anyone in contempt until the divorce is finalized.
Document everything
Documenting each and every instance where your right to visitation or shared custody got intentionally violated can help your case for custody. Texas courts, in general, will seek to create some kind of shared custody.
If your former spouse has shown, through a pattern of behavior, an unwillingness to share custody or put the children's needs first, the courts could decide to award you sole custody and relegate your former spouse to visitation on alternating weekends. Remaining calm and doing your best to put your children first is the best way to improve your chances of receiving custody.
It's also possible for joint custody to work with some court interventions. The courts may order supervised visitation, which helps ensure you receive your parenting time. You may also get ordered to attend parenting classes, which could help you and your former spouse figure out a better way to handle your disagreements in the future.
If your ex has custody after your divorce and still isn't complying with your visitation rights, your county Domestic Relations Office may be able to initiate enforcement actions.
]]>HB 453 thus far has gained little traction, as it has proven to be a very controversial piece of legislation. Texas fathers who are tired of limited time and authority over their children's lives have ardently supported its passage.
]]> Rallying for rightsAs reported by media outlet KVUE, supporters of the bill held a March rally in Austin at the capital. Another is planned for June 16 — not coincidentally over Father's Day weekend — according to the Facebook page, Texans for Parental Equality.
The group and others backing the bill have expressed their frustration with the Texas family court system and their perception that, historically, family court judges have favored mothers in contested custody issues. They want to see an equal split regarding parenting time, as well as other matters.
Why equal parenting time?
As a divorced dad in Texas, you likely can relate to many of the issues driving these groups. You are dissatisfied with every-other-weekend visitations with your kids along with a few weeks over the summer. You want to thoroughly engage with the kids, having normal fatherly interactions with them on a more frequent basis.
Your argument is backed by strong evidence that children experience serious risk of harm when deprived of relationships with their fathers. To wit:
-- Statistical evidence from the National Center for Education Statistics, a division of the Federal Department of Education, show that when dads are actively involved in their children's schools, their kids are far more likely to get "A's" in their classes.
-- Research from the Department of Health and Human Services determined that children growing up without their dads face enhanced risks of abusing alcohol and drugs.
-- One study of adolescents age 11 to 18 in the rural south revealed those growing up without paternal involvement in their lives had higher incidences of premarital sex than their counterparts with regular fatherly interactions.
Develop a strong, strategic offense
Given these hard facts, together with the emotional toll being apart takes on both dads and kids, it's vital to be proactive when battling for custody in the Texas family court system.
Don't let the courts deny your rights to share in the lives of your children. Regardless of the outcome of this or future legislation, you and your attorney can fight for equal parenting time.
]]>Working with an experienced Texas divorce attorney can help with this process. An attorney who knows Texas divorce and family law will understand how property is divided in Texas. An experienced attorney who has worked previous high asset divorces will also be able to help you connect with professionals that can place reasonable and accurate values on assets of all kinds. Additionally, a lawyer can help you determine if your former spouse is attempting to hide assets. The greater your overall marital assets, the more likely it is that one spouse may try to hide some assets from the courts.
]]> Placing a value on unusual assetsWho determines what the value of a piece of fine art, like a sculpture or painting, really is? In most cases, you need to work with an expert appraiser who will be able to give an estimate of what the piece could fetch at an art auction or in a gallery. Antiques and memorabilia should also be reviewed and priced by an expert in the field, as the prices and value can vary wildly depending on age, condition and other factors. Real estate, at least, is straightforward in that appraisers are common and easy to find. Getting an accurate price may cost you some up front fees, but that helps ensure a fair valuation.
Once you know the value of all marital assets, you can take steps to fight for a fair division of assets. Texas is a community property state. In a divorce, the courts seek to find a way to equitably divide assets. Assets owned before the marriage may revert to the original owner, while assets obtained during marriage may be split in an effort to produce a fair division. Fair doesn't always mean equal, depending on the specific circumstances of your marriage and divorce.
An attorney can help you get the best outcome to divorce
In addition to connecting you with a professional who knows how to value assets, your attorney can fight on your behalf in court. An attorney can negotiate with your former spouse's attorney and can help you devise a plan to effectively argue for certain assets during a divorce. The greater your overall assets, the more important it is to work with an experienced Texas attorney.
Source: Nov. 30, -0001
]]>Understanding how Texas courts divide marital property will help you determine the best course for your divorce settlement. An experienced attorney in the Pearland area can help you negotiate a divorce settlement that is fair and beneficial to you. Read further for an overview of Texas community property laws.
]]> Community propertyWhile community property usually means the court will divide things equally, it does not mean that the court will split all of your assets perfectly in half. The court will look at the circumstance under which you or your spouse acquired each piece of property. For example, if your husband purchased a plot of land prior to your marriage, that land may revert solely back to him regardless of any income generated by the property after you were married.
Separate property
There are typically two kinds of property in a marriage: separate property and community property. Separate property will normally not be a part of a divorce settlement. Examples of separate property include gifts, inheritances, family heirlooms, and anything you purchased before your marriage.
In order for property to be separate, you must be able to prove to the court that it is not community property.
Equal vs. equitable
Some states will divide community property equally. Other states, such as Texas, divide property equitably. When dividing property, a judge will examine several factors. For example, the court will look at your earning capacity, which of you has custody of the children, and if there are grounds for fault. Furthermore, the judge will also consider your mental and physical health, age differences and future inheritances.
Agreeing on a settlement
You and your ex-husband may be able to negotiate a fair divorce settlement outside of the courtroom. You do not have to let a judge decide which of you gets what as long as the two of you can reach a settlement that you both agree to. However, even if you reach such an agreement, you will still have to submit the settlement for the court's approval. If a judge signs off on it, the agreement will become legally binding and enforceable by the court.
If you are facing divorce, it is important to understand how community property laws in Texas will affect your settlement. Knowing what to expect will help you make decision about the things you should fight for and those you should let go.
Source: Nov. 30, -0001
]]>Fortunately, there are steps you can take to help your business survive your divorce. An experienced family law attorney in the Pearland area can review your situation and provide viable options for your divorce settlement. Read further for some tips on protecting your business during divorce.
]]> Get it in writingOne of the worst parts of divorcing with a business is valuing the entity and then agreeing on the split. If you and your husband started the business together, Texas will consider it community property. More than likely, the court will rule that you are each entitled to a share of it.
If you already have a prenuptial agreement, shareholder agreement or buy-sell agreement in place, you could save yourself a long legal battle. These contracts usually describe how business co-owners should buy or sell their interests or even the shareholder's responsibilities in case of divorce. Having such a contract in place could help settle the matter without going through years of litigation.
Have a team of advisors
During the divorce process, you could find yourself easily distracted by the situation. Be sure to have a team of advisors available. Surround yourself with people you trust, such as friends and trusted associates. Before you make any strategic decisions regarding the business, have someone review your plan.
Agree on using one valuation company
In general, valuation services can be very expensive. They often range from $10,000 and up depending on the size of your operation. If possible, you and your husband should agree on using one valuation company in order to avoid two sets of expenses.
Do not split the business in half
Sometimes, when spouses cannot agree on a valuation, they simply end up splitting the company in half. If you and your husband are already at war in your marriage, the odds of successfully operating a business as equal partners are rather slim. Instead, consider coming to an arrangement where one of you maintains ultimate control of the company while the other continues to receive the appropriate share of income. Another option is to draft a shareholder agreement giving each of you the right to buy out the other in case one of you decides to exit the business.
Divorce is never easy. When your marital assets consist of a family business, it becomes even more complicated. If you are considering divorce, it is important to understand Texas property division laws so that you can take the necessary steps to protect your interests.
]]>Your ex-husband might have hidden assets in plain sight. This is often the case if your ex knew that you were thinking about divorce. Making extra payments on the mortgage, making payments on loans from friends or family members, buying extravagant gifts, paying off credit cards and similar transactions can all fall under this category. Transferring assets to trusts or from one trust to a different trust is another way of hiding assets.
2. Businesses can hide assets
Businesses are sometimes the location of hidden assets. Unusual payments and transactions that aren't normal are signs that hidden assets might be present. Some business owners might create fictitious employees and pay a salary to them as a way to amass a hidden savings. Fraudulent payments to other businesses or contr actors can also signal hidden assets.
3. Electronic trails are important
Keeping hidden assets hidden is difficult with the electronic records of the computer age. Checking electronic records for stock transactions, bank accounts, investment accounts and other similar accounts can provide an insight into where money is going. Credit card statements and phone records could hold the key to finding hidden assets.
4. Social media accounts can provide clues
While you might not find actual hidden assets on your ex-husband's social media accounts, you might find signs that there are hidden assets. For example, if you know that your ex shouldn't have the money to buy a yacht, but you see pictures of him claiming to own one, that is a clue that something is amiss. Checking the pictures and status messages on these accounts might prove useful if you have an inkling that your ex is living a secret life.
5. Income tax returns and public records can help
Taking a look at business tax returns, your ex's personal income tax returns and public records for assets can also clue you into whether your ex is being truthful about assets. Unusual entries in these records warrant a closer look into what is going on with the money and the assets.
]]>You waited outside for the bus to drop her off after school, but when it stopped to let the other kids out, your daughter was not among them. You immediately called your ex, but he did not answer. You drove to his house and saw that no one was home.
]]> Your worst nightmare had come true. Your husband had kidnapped your daughter and he had had almost 24 hours to get out of Texas. He could be almost anywhere.Fortunately, you do have legal remedies to recover your child. There are family laws that will help you to avoid future incidents once your child is safely back in your care. For advice on changing your custody order with the court, contact a Pearland attorney with experience in child custody cases.
Law enforcement and private investigators
While law enforcement usually does not like getting involved in family issues, they are often the only option when there is a kidnapping or domestic violence. When a parent abducts a child, they typically cross state lines or borders. This requires the involvement of local, state, and federal authorities. The officers will conduct a search and once they find your child, the justice system will deal with the consequences.
If you are worried about the red tape that comes with dealing with government employees, you may consider hiring a private investigator. These professionals can often devote more time and resources because overtime restrictions and jurisdiction does not limit their search efforts.
Changing the custody order
After you have found your daughter and brought her safely home, it is time to take steps to prevent a future abduction. By taking your child outside of the state without your permission, your ex has more than likely violated the court custody order. This will be damaging to his future custody rights. It is possible that the court will eliminate, either temporarily or permanently, his custody and visitation rights. He may also be facing large fines and jail time.
If your ex has kidnapped your child, or you believe there is a risk of kidn apping, take the necessary steps to change your custody order with the court.
]]>Parental alienation, or malicious mother syndrome, isn't an actual medical condition. It describes a mother who acts to try to turn the children against you to punish you for the divorce. She might try to convince the children that you are a bad person. She might relay negative things that happened during your marriage to make you seem like a bad person. She might try to convince the children that they are better off not seeing you. In more subtle cases, she may try subtle suggestions to get them to say they don't want to go see you. In severe cases, she might physically attack you or forbid the children from having contact with you.
Effects of parental alienation
Essentially, the goal of your child's mother is to make the children hate you so that they won't want to have anything to do with you. Because the mother usually has significant influence over children, she may succeed in making them not want to have a relationship with you. This can mean that the time you spend with your child is very strained and unpleasant. It could also mean that you need go back to court to get child custody orders changed.
Options for dealing with parental alienation
If you aren't allowed to see your children or if you know that their mother is doing something to sabotage your relationship with your children, you can take her to court. A trip to court might be necessary if she is violating the court order. The court could take steps to have her follow the order or the order could be modified so you will get to see your children. Since this is a touchy subject, it is best for you to find out your options and think about how each could affect your children.
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