In a divorce case, we have a rule about not using the “F’ word. No, it is not that word, but it is the word “Fair”. Everyone wants a fair divorce settlement, but exactly what’s “fair”? There are two major issues that must be resolved in any divorce–how to divide assets and what to do about the kids. The major financial issues are to determine what assets belong to the community estate and what assets are separate property, who will pay child support, the amount of child … [Read more...]
Spousal Maintenance and Alimony won’t be Deductible in 2019
Under current IRS law, spousal maintenance and alimony are deductible by the paying party and must be reported as income by the receiving party. This arrangement is advantageous to couples going through a divorce and planning to include spousal maintenance or alimony in their property settlement because the higher earning spouse is paying taxes at a higher rate than the receiving spouse. The higher earning spouse may deduct the spousal maintenance or alimony payments on form 1040 at … [Read more...]
How Can You Get Alimony in Texas?
There are two types of support payments available in Texas: spousal maintenance and contractual alimony. Spousal maintenance is authorized by the Texas Family Code and may be court-ordered if the parties meet certain legal criteria. By contrast, contractual alimony is based on IRS provisions and an agreement between the parties. Spousal maintenance payments are strictly limited in amount and duration while contractual alimony payments can be for any amount and length of time. 1. … [Read more...]
