Protecting Your Family's Future
 

Tax Tips for Divorcing Couples

In the midst of a divorce, one of the last things you may think about are the potential tax ramifications of ending your marriage, but financial counselors say it’s something you need to address.

Child Support and Alimony Payments

It’s important to understand the tax consequences of both child support and alimony payments. Child support payments are taxable by the recipient. Furthermore, they cannot be claimed as a deduction by anyone paying child support.

Alimony payments are treated differently under state and federal tax laws. As a general rule, alimony is considered income and must be reported as such, provided the payments are made pursuant to a valid divorce or separation agreement, and the payments are made in cash (not in kind). Likewise, if the same conditions are met, alimony payments may be deducted by the payer.

Filing Status

If you are in the middle of a divorce at the end of the tax year, you can choose to file a joint return, or file as “married filing separately.” If your divorce becomes final before the end of the tax year, you must file as either single or as “head of household.”

To claim your children as exemptions on your return, you must be considered the custodial parent. Generally, the parent with whom the child spent the most amount of time will be considered the custodial parent for tax purposes. You can, however, claim your child if the custodial parent waives the exemption in writing.

Contact Us

At the office of Linda Stewart Law, PLLC, in Baytown, we bring more than 8 years of experience to clients in south Texas. To learn how we can help, call our office at 281-420-8020 or contact us online. We offer an initial consultation at a reduced fee of $50. We accept credit cards and will set up a payment plan, if appropriate. Our offices are open Monday through Thursday, from 9 a.m. until 5 p.m., and until noon on Fridays. Evening and weekend appointments can be arranged upon request.

Se Habla Espanol | ASL and ESL Services Also Available

Minimizing the Impact of Divorce on Your Children

When your marriage has ended and you’re experiencing the emotional turbulence that’s a part of divorce, the last thing you want to do is make life more difficult for your children. The divorce is going to hurt them—that can’t be avoided. But there are steps you can take to cushion the blow, to minimize the impact of the divorce.

Give Priority to Your Children’s Emotional Needs

Your children have fewer tools and less experience to draw on when it comes to coping with the radical change that divorce will bring. Accordingly, if they are going to make it through your divorce relatively unscathed, you have to pay close attention to their needs, and may need to adjust your actions to minimize the impact on them. You may need to “clear the air” with your ex, but it doesn’t have to be done in the presence of your children. You may need to vent or let go of feelings you’ve held in for a long time, but don’t do it with your children.

Don’t End Your Relationship with Your Ex—Modify It

The healthiest children of divorce come from situations where divorced parents remain in relationship and communication. Don’t view the divorce as terminating your relationship with your ex—consider it an opportunity to establish a new relationship. The more cooperative you are with your ex, the more your children see you working together, the more relaxed your children will be and the better they will adjust to the divorce.

Work Out Rules and Discipline Cooperatively with Your Ex

One of the hardest things for kids of divorce is learning and complying with different sets of rules at different households. To the extent possible, work with your ex to establish rules that apply at both households—when to go to bed, brushing teeth, etc. It takes away a lot of the confusion and anxiety that children can feel.

Contact Us

At the office of Linda Stewart Law, PLLC, in Baytown, we bring more than 8 years of experience to clients in south Texas. To learn how we can help, call our office at (281) 420-8020 or contact us online. We offer an initial consultation at a reduced fee of $50. We accept credit cards and will set up a payment plan, if appropriate. Our offices are open Monday through Thursday, from 9 a.m. until 5 p.m., and until noon on Fridays. Evening and weekend appointments can be arranged upon request.

Se Habla Espanol | ASL and ESL Services Also Available

The Relationship Between Money Concerns and Marriage Rates

The Impact of Money Concerns on Marriage Rates

Studies show that, as American culture has moved toward gender equality in the workplace, the role of marriage has changed significantly. In a recent study conducted by the Pew Research Center, more than twice as many adults over the age of 25 said they were not married, more than double the rate from a study done in 1960. Currently, one in five over 25 are single—in 1960, it was just nine percent.

According to researchers, the trend has been consistent over the last half century—each generation has been less inclined to enter into marriage than the previous one. Experts say the reasons are many, but that the single biggest factor has been the move toward gender and pay equality in the workplace.

Stephanie Coontz, author of Marriage, a History: From Obedience to Intimacy, and How Love Conquered Marriage, says that access to birth control and improvements in household technology have made marriage less about economics and more about love and companionship. But before women started having greater opportunities and earning potential, many women considered their options limited and viewed marriage as the best economic alternative. Many men also perceived a wife as a benefit, but primarily as someone to take care of the home and cook the meals while the man provided for the family.

The Pew study found that men are more likely to stay single than women, a statistic that seems tied to the trend that more and more men under the age of 50 are not working (presumably living with parents). Of the single women polled, four out of five said that the most important characteristic in a potential mate would be a steady job. The odds of that—just slightly more than six employed men available for every 10 women.

Contact Us

At the office of Linda Stewart Law, PLLC, in Baytown, we bring more than 8 years of experience to clients in south Texas. To learn how we can help, call our office at (281) 420-8020 or contact us online. We offer an initial consultation at a reduced fee of $50. We accept credit cards and will set up a payment plan, if appropriate. Our offices are open Monday through Thursday, from 9 a.m. until 5 p.m., and until noon on Fridays. Evening and weekend appointments can be arranged upon request.

Se Habla Espanol | ASL and ESL Services Also Available

The Pros and Cons of a Prenuptial Agreement

If you are considering getting married, and you are bringing significant assets into the marriage, or have children from a previous marriage, you may be thinking about putting a prenuptial agreement in place. Here are some of the advantages and disadvantages of a prenuptial agreement.

The Benefits of a Prenuptial Agreement

A valid prenuptial agreement can allow you to:

  • Identify what is and what is not marital or community property
  • Protect any property you owned before the marriage
  • Ensure that your estate plan is followed
  • Minimize expense and acrimony if the marriage fails.
  • Clearly state any unique or special agreements between parties

Contrary to what many believe, a prenuptial agreement can strengthen a marriage. If money and financial matters are a major concern, identifying in advance how they will be dealt with removes any uncertainty, and allows you to focus on your relationship. In a healthy marriage, money is a necessary topic for discussion. If you discuss it up front, it can lead to greater openness and communication in other areas as well.

The Detriments of a Prenuptial Agreement

A prenuptial agreement is essentially a business decision. If your marriage is not fundamentally built on financial expectations, needs or desires, there may be no need for a prenuptial agreement. If love or romance is at the core, a prenup will seldom support or enhance that.

Sometimes, though, the timing may just be wrong. If you discuss financial matters too early in a relationship, you may never be able to get past the perception that your marriage is mostly about money.

Before you enter into a prenuptial agreement, you want to check with a lawyer. Based on what you want to protect, you may not need a signed document—you may be protected by existing provisions in state law.

Contact Us

At the office of Linda Stewart Law, PLLC, in Baytown, we bring more than 8 years of experience to clients in south Texas. To learn how we can help, call our office at (281) 420-8020 or contact us online. We offer an initial consultation at a reduced fee of $50. We accept credit cards and will set up a payment plan, if appropriate. Our offices are open Monday through Thursday, from 9 a.m. until 5 p.m., and until noon on Fridays. Evening and weekend appointments can be arranged upon request.

Se Habla Espanol | ASL and ESL Services Also Available

Texas Divorce Basics

Texas Divorce Law—The Basics

If you are considering filing for divorce in Texas, you probably have a lot of questions—here are answers to some of the most basic questions about divorce.

Do I Have to Give a Reason for Wanting a Divorce?

No. In Texas, you can ask for a divorce with or without stating the grounds. In a no-fault divorce, you need only advise the court that you have irreconcilable differences. You can, however, state grounds, such as adultery, cruelty, abandonment, felony conviction or confinement in a mental institution. If the court agrees, you may be able to get more than an equal share of marital property.

Do I Have to Be a Texas Resident? If So, For How Long?

Texas does not have jurisdiction over a divorce proceeding unless one of the parties has been a resident of the state for at least six months, and a resident of the county in which the action is filed for at least three months.

How Long Will It Take for My Divorce to Be Final?

That will vary, depending on a number of factors, including the ability of the parties to agree on custody, visitation, support and property distribution. At a minimum, however, a divorce cannot be finalized for at least 60 days after the filing of the complaint.

How Will Property Be Divided?

Property will be divided under the community property laws of Texas.

Is Alimony Available in Texas?

Texas law allows alimony in limited situations, typically where the recipient lacks the ability to be self-supporting, has a physical or mental disability, or cannot take care of himself or herself.

How Is Child Custody Determined?

Ultimately, the court must be satisfied that the custody and visitation arrangement is in the best interests of the minor children. The parties may agree to a specific arrangement, but the court may reject that agreement if it determines that it was entered into under duress or coercion, or is not in the child’s best interests.

How Does the Court Calculate Child Support?

Texas uses a formula that includes the income of both parties, the needs of the child, and any other special factors.

Contact Us

At the office of Linda Stewart Law, PLLC, in Baytown, we bring more than 8 years of experience to clients in south Texas. To learn how we can help, call our office at 281-420-8020 or contact us online. We offer an initial consultation at a reduced fee of $50. We accept credit cards and will set up a payment plan, if appropriate. Our offices are open Monday through Thursday, from 9 a.m. until 5 p.m., and until noon on Fridays. Evening and weekend appointments can be arranged upon request.

Se Habla Espanol | ASL and ESL Services Also Available

 
Left Menu Icon
Stewart Law PLLC