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Annuity Transfer - What are the Risks
Annuity Transfer - What are the Risks
Many people who know in the back of their minds that they got the
possibility to transform a monthly payment or annuity long term
payments into a big lump sum and by that to relieve some
temporarily financial...
Be informed about the Medications You Take.
The recent withdrawal of the prescription drugs Vioxx and Bextra have arthritis patients concerned about their health, lawyers busy with lawsuits, and Congress poring over thousands of pages of documents obtained from the manufacturer. The drugs,...
Credit Report – Check Yours Regularly… And For Free
In the twenty-first century, there are few documents that have a greater impact on the lives of Americans then their credit report. Credit rating determines one’s ability to buy a home, a car, or to obtain a credit card or a job. Since these things...
Credit virus Debt
Secured And Unsecured Debt. What's The Difference? It’s easy to just think that debt is just debt, but in reality, there are different types of loans, and it’s important to know what which type you have. You will need to understand the...
Structured Settlement Payments - The Who and The What
A structured settlement is a series of payments made over a period of time. People usually get them as a result of a lawsuit. For various reasons, people who receive these payments, sometimes wish to cash them out and get a lump sum payment. There...
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Post-Divorce Alimony in Texas
This article provides a brief overview on Texas law concerning post-divorce alimony. Laws differ from state to state and individual circumstances vary, so you should consult with a qualified family law attorney in your area for specific advice on your particular situation. Additionally, this article deals only with post-divorce alimony. It does not address temporary alimony, which is provided for under a different provision of the Texas Family Code.
Two Kinds of Alimony: Contractual and Court Ordered maintenanceThere are two kinds of post-divorce alimony in Texas: contractual alimony and court ordered maintenance. The Texas Family Code also provides authority for the court to order temporary alimony which occurs while a divorce is pending. However, temporary alimony is outside the scope of this article and will not be addressed.Contractual AlimonyContractual alimony is based on an agreement between the parties in their divorce decree. For tax purposes, contractual alimony is normally deemed income to the receiving party and is deductible from the income of the paying party. Since contractual alimony must be based on an agreement of the parties, there are no limits to the possible amount or duration of the alimony. Court Ordered Maintenance Court ordered maintenance is provided for by Texas Family Code Chapter Eight. Although actually awarded in only a small percentage of Texas divorces, the court has the right to order one spouse to pay the other post-divorce maintenance in either of two circumstances:1. The payor spouse either received deferred adjudication or was convicted of a crime constituting family violence within two years of the filing of the divorce case, or2. The parties have been married at least ten years and the receiving spouse has some kind of financial limitation (disability, unable to work because caring for the party's child, or lacks earning ability to meet minimum reasonable needs).The monthly amount of court ordered maintenance is capped at the lesser of: a) $2,500 or b) 20% of the monthly payor's gross income.The maximum duration of court ordered maintenance is three years. The only exception is when maintenance is ordered as the result of a disability, in which case the duration can potentially extend indefinitely. ConsiderationsWhere there is a large disparity in incomes alimony can sometimes be used as a useful settlement tool. Since alimony is generally taxable to the receiving party and deductible to the paying party it can be often structured so that it is advantageous to
both parties.For example, a party in a high tax bracket can agree to make monthly alimony payments in exchange for a more favorable property division. If the receiving party is in a lower tax bracket, the overall income tax paid could be significantly lower than what it would be otherwise. Another factor to consider is how rarely Texas trial courts order maintenance, absent an agreement. The statute allows for maintenance only when the specific statutory circumstances have been proven. There are several appellate cases that have reversed trial court decisions ordering maintenance when the requesting party did not provide sufficient proof that the standard had been met. In cases where there is a large amount of community property, one of the most effective arguments in attempting to defeat a maintenance claim is that the requesting party will have ample resources to provide for their needs since the party will receive a significant amount of assets from the division of property.Another common argument used to defeat a maintenance claim is that, during the pendency of the divorce, the requesting party has not made significant attempts to either obtain employment or obtain training that would allow the party to obtain employment. As an example, lets take a divorce case where the wife is requesting maintenance on the grounds that the marriage is longer than ten years and that she lacks the earning ability to meet her minimum reasonable needs. If the case has been pending for several months and at the time of
trial she has still made no effort to obtain employment or improve her job skills, it will be a difficult claim to succeed upon. The court is unlikely to find that she is "unable" to meet her reasonable minimum needs and more likely to believe that she is unwilling to take the necessary steps in order to provide for her own support.ConclusionAlimony in Texas, while rarely ordered, is an important and complicated issue. It can be used as an effective settlement tool and can potentially be a significant trial issue. For someone involved in a Texas divorce case with a potential alimony issue, the issue should be discussed in detail with an experienced divorce lawyer.
Scott Morgan is a practicing Texas divorce attorney. For more information on texas divorce visit his website at http://www.texas-divorce-info.com. The website provides general information and resources on divorce, as well as specific information on Texas divorce law.
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National Structured Settlements Trade Association (NSSTA) |
Provides structured settlements using periodic payments to resolve claims. |
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Structured Settlements |
Setting up structured settlements for personal injury claims. |
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Full-service plaintiff structured settlement firm since 1986, providing services and strategies for personal injury lawyers and clients during the ... |
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Structured Settlements | Annuity Purchasers |
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Structured Settlement Cash for Structured Settlement Annuity ... |
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EPS Structured Settlements Group: A Structured Settlements Company ... |
EPS Settlements Group is located in Denver, Colorado and is a founder of the structured settlements industry. |
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Mckellar :: Structured Settlements |
News. ... Skip Intro Always >> |
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The Structured Settlement - What You Need To Know |
About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to ... |
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Settlement Capital Corporation - sell structured settlements,sell ... |
Direct purchaser of structured settlements and other annuities. |
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A structured settlements annuity provides injury victims or the victim's ... John Hancock Structured Settlements and Attorney Fee Annuities are just two ... |
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Structured Settlements - Prudential Financial |
Your company may become liable to pay a settlement as the result of a legal proceeding. A Structured Settlement Annuity provides ongoing periodic payments ... |
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Finance - Structured-Settlements Ezine Articles |
EzineArticles.com allows ezine or email list publishers to upload or download free expert content that can be used within email newsletters or websites. |
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Understanding Structured Settlements: A Novice's Guide to the ... |
Learn what a Structured Settlement is in plain English. Find Structured Settlements company, payments, broker, annuity and loan info. |
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Structured settlement - Wikipedia, the free encyclopedia |
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Structured Settlement vs. Lump sum - What to do? |
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DOG BITE LAW - Structured Settlements |
For those reasons, changes were made to the Internal Revenue Code that enable knowledgeable attorneys to create "structured settlements." ... |
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Structured Settlements Law – Lawyers, Attorneys & Free Legal ... |
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