During the divorce process, a couple will need to divide multiple different types of marital property. In addition to physical property, spouses will also need to address ownership of financial accounts and other complex assets, including retirement accounts or pensions. When dividing retirement assets, spouses should use a qualified domestic relations order, or QDRO. Understanding the purpose of these types of orders and the benefits they provide will ensure that spouses can protect their financial interests during the divorce process and in the years to come.

Dividing Funds in Retirement Accounts

For employer-sponsored retirement accounts such as 401Ks, a person will have a certain amount deducted from their income before paying taxes. The money saved, which will grow through investments made by the plan holder, will usually remain in an account until a person reaches retirement age, and they will pay taxes when the funds are withdrawn. 

During their divorce, a couple may agree that some of the funds in a retirement account in one spouse’s name will be withdrawn and transferred to the other spouse. However, simply withdrawing the amount will result in penalties if the account holder has not yet reached retirement age, and taxes will apply to the withdrawal. To avoid this, the court may issue a QDRO that will specify the amount that should be withdrawn and transferred to the other spouse. When a QDRO is provided to the plan holder, penalties and taxes will not apply to withdrawals, and the other spouse can roll the funds over to their own account.

Many spouses considering divorce have concerns about the financial ramifications of the split. Divorce can be costly, and divorce expenses can grow even more if you make financial mistakes along the way. Knowledge is power, and thankfully, when you know what to look out for, you can minimize the amount of money you spend in the process of getting a divorce. 

Not Realizing That Marital Debt Becomes a Shared Responsibility 

Many couples carry the weight of debt together. In many cases, two partners will come to an understanding about who is responsible for what percentage of the marital debt. However, when spouses decide to get a divorce, casual agreements do not always apply in the eyes of the law. 

For instance, imagine that you and your partner verbally agreed that you are responsible for 20% of the debt and your spouse will take care of the 80% remaining. Unfortunately, this type of agreement is not enforceable by the court. If your spouse fails to hold up his or her end of the bargain, creditors may come after you for payment. Paying off debt before the divorce is finalized can help mitigate this financial stressor.  

When a couple chooses to end their marriage and get a divorce, disputes related to property division can become complex and contentious. Spouses will be required to divide all of their marital assets and debts, and disagreements about how to do so can be difficult to resolve. However, matters can become even more complicated if one spouse is accused of hiding assets in an attempt to avoid sharing them with the other spouse. In Texas, this is known as “fraud on the community,” and a spouse who is accused of committing this form of fraud may face consequences.

Addressing Issues Related to Hidden Assets

Community property consists of all assets and debts that a couple acquired during their marriage. This property must be divided between the spouses in a manner that is fair, ensuring that each party will have the necessary financial resources going forward. However, there are a variety of ways that a spouse may attempt to conceal assets in hopes that they will not have to share them with the other spouse. Methods of doing so may include:

• Physically hiding money or property - A spouse may conceal cash in certain locations, such as a safe in their home, a safety deposit box at a bank, or other hiding spots. They may also use marital funds to purchase valuable items such as artwork or jewelry and then undervalue these items during the divorce process.

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Every child has two biological parents. However, there are some situations where a person may not be recognized as a child’s legal parent, and in these cases, paternity may need to be established through the legal system. Doing so will protect the rights of the parent and the child. Both parents will be able to maintain a relationship with their child and be involved in raising them, and the child will have the right to receive child support to ensure that their needs will be met. Paternity can also provide other benefits, such as making sure a child has access to family medical history and giving a child the right to receive an inheritance from their parent or qualify for certain types of benefits, such as Social Security. Parents will want to understand the procedures that can be followed to legally establish paternity.

Acknowledgment of Paternity and Court-Ordered Paternity

It is usually unnecessary to establish paternity when parents are married, since a mother’s spouse is presumed to be a child’s legal parent. In addition, a person will be presumed to be a child’s parent if they were formerly married to the child’s mother, and the child was born within 300 days after the couple’s marriage ended, including through a divorce, annulment, or death. A presumption of paternity will also apply if a person lived in the same home as the child during the first two years after the child was born and told others that they were the child’s parent.

In situations that do not meet the criteria described above, parents will need to take additional steps to establish paternity. The simplest and easiest way to do so is through an acknowledgment of paternity (AOP). This is a legal document that both parents will complete and sign. If necessary, an AOP may state that the child’s presumed father is not the biological father. In these cases, the presumed father will also need to file a denial of paternity.

When a couple with children goes through a divorce, in most cases, they still must have some kind of relationship with each other as they co-parent their children together. Some parents are able to develop a routine that works for their family with little or no conflict at all. Unfortunately, many other parents experience difficulties as they try to work through residual acrimony left over from the divorce that often spills over into their co-parenting relationship.

Having a solid parenting pan in place can help reduce these conflicts and make everyone’s lives – especially the children’s – so much less stressful. The following are some co-parenting tips that can also be helpful.

Promote Consistency

Although you and your ex-spouse are no longer married and parenting under the same roof, you both need to remain on the same page when it comes to how you deal with your children. Although not all rules will be the same at both parents’ homes, having consistency in bedtimes, activities, and allowed behaviors goes a long way in helping children adjust to their new life of having two homes and two routines.

While there are many issues that may lead to contentious discussions between divorcing spouses, one of those issues that can often lead to long-term acrimony is child support. It is not uncommon for the parent who is paying the support to resent the money they have to turn over every month to their ex-spouse. Conversely, it is also not uncommon for the parent who is receiving the support to feel the amount of child support they are receiving does not come close to meeting the actual financial needs of raising children.

Although Texas family courts use a formula to determine which parent should pay support and how much that support should be, it is still important to provide the court with any evidence that could have an impact in the amount of support obligation the court orders. The following is a brief overview of certain types of evidence that may be required. Your Frisco child support attorney can provide more details of the type of factors that could apply in your particular case.

Required Information

At the start of your child support case, and usually at every hearing during the process, you and the other parent will be required to file a financial affidavit with the court. It is imperative that all information on the affidavit is correct and true because it is submitted to the court under the penalty of perjury.

October is designated as National Domestic Violence Awareness Month. The campaign was established in 1987 as a way to raise awareness about domestic violence issues. Despite more than three decades of work by countless organizations and advocates, domestic violence is still an underreported problem, occurring to millions of victims across the country from every walk of life and every socio-economic background.

Intimate Partner Violence

The Centers for Disease Control and Prevention (CDC) uses the term intimate partner violence (IPV) to describe physical, psychological, or sexual harm that is inflicted on a spouse or partner. National statistics show that about one in three women will experience IPV in their lifetimes. Although women are the majority of domestic violence victims, it is not just women who are abused. Men and women both experience it in hetero and same-sex marriages and partnerships. According to the National Coalition Against Domestic Violence (NCDAV), about 20 people per minute are victims of IPV every minute in the U.S. This comes out to more than 10 million women and men each year.

Other alarming statistics provided by the NCDAV include:

Several months ago, Bill and Melinda Gates announced that they were divorcing after almost 30 years of marriage. While many in the media and public voiced their surprise that the couple were splitting up after so many years, divorce among older couples – sometimes referred to as “gray divorce”  – is becoming quite common. Research shows that one in four people who file for divorce in the U.S. are over the age of 50 and more than half of those divorces involve marriages that had endured for at least two decades. 

While every divorce has similar issues to work through, there are some issues that are unique to older couples that younger couples usually do not have to consider when they split up. These issues – if not properly addressed – can leave a person unprepared for life after divorce. Having a Frisco divorce attorney protecting your interests can make a significant difference in how prepared you are.

Pensions and Other Benefits

One important issue that couples going through a divorce have to consider is how their pensions and other retirement accounts will be divided. Any retirement accounts and pensions will be divided using a court-issued Qualified Domestic Relations Order (QDRO). However, one issue that an older couple may face when dividing these accounts that a younger divorcing couple does not is that their retirement date is not that far away, and they may find themselves facing financial hardships they are unprepared for. If a spouse’s retirement account is suddenly 50 percent less than what they had planned on for retirement because their ex received the other half in the divorce settlement, that reduction can have a consequential effect on the quality of retirement life they will experience.

Prenuptial agreements or “prenups” are legal contracts that engaged couples develop before they get married. For decades, many people assumed that prenuptial agreements were only for the rich or for couples who do not take their wedding vows seriously. Fortunately, these myths have largely been eradicated. Modern couples recognize the importance of planning for their financial futures using a prenuptial agreement and realize that prenups can benefit the marriage in a multitude of ways—even if the couple never divorces. Read on to learn about prenuptial agreements in Texas and what you can do if you are interested in creating a prenup.

What is the Purpose of a Prenuptial Agreement?

A prenuptial agreement or premarital agreement mainly deals with financial issues. The document can specify:

• How property should be allocated when a spouse passes away

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Most people think of divorce in terms of the personal or emotional implications. However, divorce can also bring about dramatic financial consequences – especially when a divorcing spouse is reliant on the other spouse’s income. If you are a stay-at-home mother or father, have a disability, or have otherwise not worked outside of the home in several years, you may be worried about supporting yourself after the divorce. You may wonder whether you qualify for alimony or spousal support. Read on to learn about alimony laws in Texas and what you can do if you wish to pursue alimony during your divorce.

Who Qualifies for Spousal Maintenance?

Alimony, called spousal maintenance in Texas law, can help a divorcing spouse cover necessary expenses until he or she is able to be financially self-supporting. However, spousal maintenance is not always awarded. In fact, Texas courts presume that spousal maintenance is not necessary unless the spouse requesting alimony can demonstrate a reasonable need for financial assistance.

To qualify for alimony in a Texas divorce, you must not have sufficient assets to provide for your basic needs on your own. Additionally, at least one of the following statements are true:

Reaching the conclusion that a marriage is beyond saying is an emotionally-charged realization for any couple. However, spouses who own a family business such as a restaurant have an extra layer of difficulty. If you or your spouse own a restaurant or other business, you may be unsure of what will happen if you divorce. Will we split ownership of the business 50/50? Should we sell the business? Situations like this are difficult to figure out – legally, financially, and personally. Consequently, it is highly recommended that business owners seeking a divorce work with a skilled attorney.

Who Has a Right to the Business?

As with any property division concern, divorcing spouses may be able to negotiate an agreement about how to divide assets. However, if the issue is litigated, it is important to understand how Texas property division laws apply to family businesses. Texas courts follow “community property” rules when dividing assets in a divorce. Property that a spouse owned before getting married is separate property. Marital property, on the other hand, is jointly held by both spouses. Most property that a spouse acquires during the marriage is considered marital property. However, the identity of an asset as marital or separate can change. For example, a business that a spouse owned before getting married may become marital property if the other spouse spent time, money, or resources growing the business.

Valuing Your Family Restaurant in a Divorce  

Before you can have a meaningful conversation about what to do with a family restaurant during divorce, you need to know the restaurant’s value. A financial professional experienced in valuing family businesses can determine the best method for reaching an accurate value. Once you know what the restaurant is worth, you can decide how to proceed.

The Texas Department of Family and Protective Services (DFPS) is tasked with investigating allegations of child neglect and abuse in the Lonestar State. If you recently learned that you are being investigated by Child Protective Services for possible child neglect or abuse, you may understandably be shocked and concerned. You may also be unsure of how to handle the situation. To receive personalized guidance unique to your situation, contact a family law attorney with experience handling cases of alleged child neglect and abuse. Additionally, keep the following considerations in mind.

Understand What to Expect During the CPS Investigation  

In Texas, CPS investigations are typically completed within 30 days of the initial report. During the investigation, a caseworker may:

• Interview your child – The caseworker may visit your child and ask him or her a series of questions. You have the right to be present during this interview if you so choose. However, if a parent denies a caseworker an interview with his or her child, the DFPS may obtain a court order allowing them to proceed with the interview against the parent’s wishes.
• Interview you and the child’s other parent– The caseworker may also ask you and the child’s other parent or guardian questions. These questions may later be used during child custody proceedings or even criminal proceedings. A family law attorney can help you prepare for questions you will likely be asked during this interview. The caseworker may also interview other family members who are heavily involved in the child’s life.
• Obtain records and documentation – The caseworker may ask for the child’s medical records, school reports, and other documentation.
• Assess the child’s living environment – The caseworker may conduct a home visit during which he or she will assess whether your home is a suitable living environment for the child.

Remain Calm and Cooperative  

Many parents and guardians who are accused of child abuse or neglect are infuriated by the implication that they are neglectful or abusive. While this reaction is certainly understandable, it is important to remember that CPS is required to investigate any and all allegations of child abuse. Furthermore, being accused of abuse or neglect does not mean that you actually committed these acts. Assert your rights, but make sure to maintain a calm and non-threatening demeanor. Raising your voice or acting aggressively toward the investigator may be used as evidence against you and can severely damage your case.  

Dealing with a child custody dispute can be enormously stressful. After all, your child’s wellbeing could be on the line, and so, too, could your relationship with him or her. The conflict that’s present in one of these disputes can be exacerbated when one parent thinks that the other is intentionally trying to cut him or her out of the child’s life. In some instances, this could be considered parental alienation.

The Basics of Parental Alienation

In its most basic terms, parental alienation occurs when one parent actively manipulates a child in hopes of creating distance between that child and his or her other parent. Oftentimes this manipulation is aimed at obtaining a more restrictive child custody order that further cuts the other parent out of the child’s life.

What Does Parental Alienation Look Like?

The breadth and severity of parental alienation can be massive. It can be as simple as failing to keep the other parent apprised of the child’s activities and medical appointments, or it could be as severe as to program a child to believe that he or she was abused or neglected by the other parent. The latter is often achieved by creating false memories.

There are many people living in Texas who are in the military. They provide a very valuable and honorable service to this country. In providing this service they make many sacrifices in their personal lives. They may be required to move to different bases in very different locations. They can also be deployed to other countries with relatively little notice. They also need to perform very difficult tasks under very difficult circumstances while they are deployed.

While they are deployed they are not able to bring their families with them and are forced to spend large amounts of time apart from family and loved ones. This can be very difficult for the servicemember and their family. It can also create a difficult situation for parents who are no longer with the other parent and have or need to have custody orders dictating when they will have their children in their care. These decisions are made based on the best interests of the children.

Factors military parents need to consider for custody

The fact that a parent is in the military does not mean that it is not in children’s best interest to be in their care, but due to the unique circumstances mentioned above, military parents need to consider those factors when developing parenting plans and custody arrangements. Parents will need to determine who will care for the children while they are gone. What will happen when they return from deployment, how they will communicate with the children during deployment and other factors.

This blog has recently discussed the benefits of mediation and also debunking myths about mediation. It is also helpful to understand the value of divorce mediation in the context of the goals of mediation.

The goals for divorce mediation

The goals of divorce mediation include:

• The creation of an equitably, legally sound and mutually acceptable divorce settlement agreement;
• Avoiding the expense and trauma oftentimes associated with litigation; and
• Minimizing hostility and post-divorce controversies

By achieving the goals for divorce mediation, the divorcing couple may not only reach a divorce settlement agreement that is favorable but may also enjoy the benefit of creating a framework and process for resolving future disputes that may come up. The mediation process uniquely positions the divorcing couple to achieve their divorce-related goals because of the unique nature of the process and its differences from divorce litigation.

Divorce is a legal process that ends a marriage. It is often accomplished in the courts of Texas, but it can also be completed through alternative means. One of those means is mediation, and for some readers, the idea of divorce mediation may be completely new.

Mediation is a process that uses collaboration and cooperation to settle legal matters, as opposed to the adversarial process of divorcing in court. This post will address 3 myths that individuals may wrongly believe about mediation as a tool to achieve a divorce, but readers are reminded that this post does not offer legal advice. When a Texas resident has questions about divorce and their options, they can turn to a trusted Frisco family law attorney who works with both mediation and litigation divorce clients.

Myth #1: Can’t get a satisfactory outcome through mediation

It is a common myth that a divorce must involve fighting and high conflict. This is not true. Though some divorces happen in court and involve significant differences and dispute, others are worked out between the parties with limited involvement from others.

Divorce mediation is a different way of handling the divorce process and is an alternative for divorcing couples to familiarize themselves with. Divorcing couples should understand the potential advantages of divorce mediation and how to prepare for the divorce mediation process.

Potential advantages of divorce mediation

The following are some advantages of mediation

• Saves time and money: mediation means avoiding the formal divorce process which can be more costly and time consuming. Compared to litigating a divorce, mediating it can be a more efficient process for the divorcing couple.
• The process is fair to everyone: mediation involves a third-party neutral who helps the divorcing couple resolve their divorce-related concerns. As an objective party, the mediator may be able to help the divorcing couple reach solutions they may not have otherwise considered.
• The process is more private: mediation is not a public process and does not create a public record. For that reason, it can be more private which can be easier on the divorcing couple and any children from the marriage.

How to prepare for divorce mediation

To prepare for divorce mediation, the divorcing couple should:

Child Protective Services in Texas is tasked with a big responsibility: keeping children safe. That’s why they’re required to investigate all allegations of abuse and neglect without much regard to the truthfulness of the initial claims. This can jeopardize your family integrity, which is why you need to be careful in how you interact with CPS and its employees. If you’re not, then your children could be taken from your care, which could have major implications for both your short- and long-term rights as a parent, as well as any outstanding custody cases you might have with your children’s other parent.

Things to consider when coming into contact with CPS

To successfully navigate your involvement with CPS, you need to keep a few things in mind. Let’s look at a few of them:

• Your statements will be used against you: CPS cases oftentimes become child welfare cases where the State may try to present evidence against you in hopes of keeping a child out of your care and/or ensuring that the State can intervene in your life to provide you with certain services. Therefore, when interacting with CPS workers or law enforcement, try to keep your temperament in check and don’t be so quick to provide information. We know that coming into contact with the child welfare system can be stressful and nerve-wracking, but you don’t want to cause any self-inflicted harm to your family or your rights as a parent.
• Know your rights: You have a lot of protections when it comes to involvement with CPS. For example, you children can’t be removed from your care without a court order or the assistance of law enforcement. Therefore, a CPS worker, on his or her own, can’t remove your children from your care. Also, CPS workers might ask you to provide a lot of information or even submit to a drug screen. During the investigation phase, you’re under no obligation to provide that information or submit to a drug screen. CPS also can’t interview your children without your consent or a court order. It’s helpful to be as cooperative as possible during these investigations, but, again, you don’t want to cause any avoidable harm to your family’s integrity.
• You don’t have to navigate the process alone: The CPS and child welfare systems can seem confusing and stacked against you as a parent. The good news is that you don’t have to face the process alone. Instead, you can choose to obtain the assistance of an attorney who understands this area of the law and how to navigate with your parental rights in mind. This attorney can not only advocate for your best interests, but he or she can also serve as a buffer to a certain extent between you and CPS, which can make things a lot easier on your end.
• CPS involvement can affect your custody case: Although CPS assessments and child welfare cases are separate from your divorce or paternity case, they can have major implications on pending custody matters. Therefore, you need to be cautious in your dealings with CPS and keep in mind the bigger picture of how your words and actions can affect your relationship with your child even after the State is out of your life.

Have experience on your side

Dealing with CPS and the juvenile courts is unlike any other part of the law. That’s why it’s helpful to have someone on your side who is experienced in navigating the system and can assist you in getting past whatever allegations you may be facing. One of these attorneys can help you not only work with CPS and the court as needed, but they can also help build the defense that you may end up needing to protect your rights as a parent and your children’s best interests.

When couples are preparing to divorce, each spouse may wonder how marital assets such as retirement funds will be divided. The way assets are split between the two spouses will depend on the type of retirement account the former couple has and the regulations associated with the account(s). It's important to know that not all retirement accounts are alike. If you live in Texas, here are some important things to know about receiving assets once your marriage is over.

Defined contributions

Defined contributions are retirement plans in which an employee contributes a set amount. The employer will likely match the employee's contributions to a certain amount. A 401(k) plan is the most common type of defined contribution account. A worker has a specific amount of their paycheck deducted and set aside into a retirement account. The employer matches the contribution to a certain point. The deduction for this account is pre-tax, which means the money comes from the worker's gross pay before taxes are taken out. Once the employee retires, the money is taxed when received. Account-holders are always aware of what is in their retirement account and what the funds are worth. If the account holder is involved in a divorce, the money from the retirement account generally must be split between the account holder and their former spouse.

IRAs

For an IRA, the funds are given to each party by way of a transfer after the divorce is final. For instance, if the account contains $200,000, the spouse who is not the retirement account holder will receive a portion of the funds transferred into a new IRA. The funds will not be taxed if they are transferred to an account that similar to the original one.

Filing for divorce in Texas is a challenging time for parents and their children. While you're trying to navigate through the divorce process, your child might have trouble concentrating on their schoolwork. How can you keep their grades from slipping when you have so much on your plate?

Tips on keeping your child focused on school

During the divorce process, school is one of the few things that give your child a sense of normalcy. Make sure you focus on your child's education just as much as you did before you filed for divorce. While it's easy to focus on other things, you should set expectations for your child and encourage them to keep up with their schoolwork. If you're not paying attention to them, they might give up on their grades altogether.

If possible, you should communicate with your former spouse to make sure that you have a consistent set of rules in both households. If you make your child do their homework but your former spouse doesn't, your child will probably start thinking that education isn't important. They might even want to spend more time with their other parent because they're the "fun" parent. You and your former spouse should set up a consistent schedule for your child to complete their homework and participate in after-school activities.