Couples who choose to get divorced when they are older may have a retirement account such as 401k or an IRA to divide in the process. However, even if a Texas couple splits amicably, it is necessary to allocate the funds within the account properly. Otherwise, it could result in an unnecessary tax hit or otherwise jeopardize an individual's financial situation. If a 401k is being divided, it must be done under the terms of a qualified domestic relations order (QDRO).
Because of debt or because of having many assets, millennials in El Paso who are getting married might want a prenuptial agreement. According to a survey by the American Association of Matrimonial Lawyers, there has been a rise in the number of millennials seeking them.
Women in Texas who are considering getting a divorce should be aware of how the process can impact them financially. Out of 1,785 divorced women who participated in a recently released survey, 46 percent stated that their divorce had resulted in unexpected and undesired financial issues.
When a Texas couple decides to end their marriage, they could enter a time-consuming legal process. A divorce involves three stages: It begins with filing paperwork, moves on to discovery that primarily requires a disclosure of financial records and then concludes with disposition. Disposition might result from the parties negotiating the terms of their split through mediation or collaborative divorce, but it could require a court trial, where a judge makes final decisions. Organization, goal setting and a realistic evaluation of finances and the needs of children will benefit people entering this process.
Upcoming changes to the tax treatment of spousal support may provide motivation for Texas residents to end their nuptials before the start of 2019. This is because alimony will no longer be considered income to the person receiving it and a tax deduction to the person providing it. While not having to pay taxes on alimony may seem like a positive, it could actually limit the amount of support offered.
Texas residents who choose to get divorced could do so on their own or end their marriage through litigation. In many cases, getting a divorce without going to court is faster than asking a judge to make a ruling. However, this is generally only a good idea for those who don't have children or many assets to divide. For individuals who need to get a judge to make a final ruling in a divorce, it could be months before a court date is set.
Texas residents who are considering divorce or going through the process are concerned with the many changes it might bring. One of these concerns is often how it will financially affect them during retirement. In most cases, the impact is negative. The only exception seems to be single women, whether they had always been unmarried or were divorced.
Divorce is notorious for being difficult. Every decision made during this legal process can have long-term consequences on the lives of both ex-spouses and any children involved. While some points may have full agreement from all parties, contested issues can cause a lot of stress and anger. In order to make the process easier for everyone, divorcees should consider following a few tips.
Parents in El Paso often worry about how best to fund their children's higher education. The cost of a university education in the United States is high and rises on a continuous basis. Statistics indicate that the average annual cost of attendance, including tuition, fees, room and board, at a four-year university is $46,950; the average annual cost for an in-state public university remains costly at $20,700. These figures are not stable, and the College Board estimates that expenses continue to rise on a 3 percent basis every year. The high cost of attendance underlines the importance of financial planning for educational expenses.
El Paso couples who are ending their marriages might want to consider a more collaborative approach to the process. Increasingly, couples are finding that working together may leave them more financially secure afterwards. With divorces often costing a lot of money, trying to minimize the expense may be worthwhile.