When Texas couples get a divorce, one of the parties might be able to draw Social Security payments based on the work record of the other. However, the couple must have been married for at least 10 years for this to be the case.
Texas couples should be aware that after getting a divorce, their tax situation will change as well. If the divorce occurred on or before the final day of the calendar year, people will not be considered married for that year. If the marriage is annulled, it will also be necessary to file amended returns for all the years of the marriage since legally speaking, the couple is no longer considered to have been married.
Retirement benefits accrued during the marriage by a spouse are subject to division when a Texas couple divorces. This can included amounts accrued by a federal employee in a Thrift Savings Plan.
When Texas couples are ending their marriage, they should consider the possible tax consequences before executing a settlement agreement. A case decided in U.S. Tax Court illustrated the importance of documenting all spousal support payments within a legal agreement in order to receive a tax deduction for the expense.
Texas couples who are ending their marriages may need to take stock of their financial situation and make plans for how they will handle those finances both during and after the divorce. It may be better to take advice from legal and financial professionals than from friends and acquaintances who have been through divorces before. Different situations may require different solutions.
When Texas couples who started a company decide to get a divorce, it can be difficult to determine what will happen to the business. If the couple did not have a buyout agreement when they founded the company, the business could end up being given to one of the estranged spouses or be sold altogether.
The largest issue in many divorces is how assets will be divided between the couple. Some spouses who are interested in ensuring that they receive an equitable portion of the property may miss out on assets that they have rights to because the assets are difficult to divide. While checking accounts may be easy to split up, this is not always the case with all the assets a couple may own.
Older people in Texas who are considering divorce may struggle with the emotional turmoil of ending a decades-long marriage as well as the practical difficulties of separating their life from that of their former spouse's. Research says divorce is on the rise among older adults, and this is reflected as well in the divorces of prominent couples such as Morgan Freeman and Myrna Colley-Lee, who were married for 24 years, and Al and Tipper Gore who were married for 40.
Baby boomers in Texas and across the country represent an age group with a rising divorce rate. The National Center for Family & Marriage Research found that between 1990 and 2014 divorces doubled for people age 50 and older. In the next age bracket of 65 and up, divorce rates tripled. When people at this age divorce, the division of retirement accounts can be a major concern.
When people divorce in Texas, finances are often a major concern. As part of the divorce settlement, issues such as property division, alimony and child support will either be negotiated between the spouses or decided by a judge. What many people do not realize, however, is that they may be entitled to claim Social Security on the earnings of their former spouse even after divorce.