Is alimony in Texas tax deductible?

The Internal Revenue Code provides that post divorce alimony payments are tax deductible by the paying spouse and taxable to the recipient spouse as "ordinary income." For this reason, it is not uncommon for a negotiated settlement to include the payment of a high amount of spousal support, because such a payment results in tax benefit to the payor.  There are some limits to the application, so be sure to check with your tax professional.
For Smart Divorce in Texas

Diane
texasfamilylaw.info

Medical Insurance through spouse's employer after divorce. (Cobra)

You might be entitled to keep your medical insurance benefits under your former spouse's group plan. The Consolidated Omnibus Budget Reconciliation Act of 1985 created what are commonly known as "C.O.B.R.A." benefits, which are available to the former spouses of people who work for employers who have 20 or more employees.

In general this law provides that employers must offer "continuation coverage" for the first three years after the termination of the marriage. The law further provides that the employer can charge the former spouse for this coverage, but the charge cannot be more than 2% greater than what is charged to employees.

After the three years have ended, the law states that the employer must offer a former spouse the right to purchase "conversion coverage", but there are no limits on how much the employer can charge for this coverage.

The C.O.B.R.A law further provides that the former spouse does not have to pass a physical examination in order to obtain the continuation or conversion benefits. This is significant if you have any pre-existing conditions that might not be covered by another medical insurance carrier.

In order to obtain your C.O.B.R.A. benefits you have to file your application with your spouse's employer by no later than sixty (60) days after the termination of your marriage. If you do not file your application by that date you will not be able to ge t these important benefits.

If you wish to have your C.O.B.R.A. benefits you must contact your former spouse's employer directly and request the appropriate forms. This is not a service that is customarily performed by our office. You must contact your former spouse's employer directly if you want to obtain these benefits.

At the current time, the federal government is subsidizing much of the cost of this continuation coverage.

For Smart Divorce in Texas

Diane

Texas Long Term Alimony/Support

THIS POST IS NO LONGER REFLECTS THE LAW AS OF SEPT 2011  SEE POSTS AFTER JULY 2011
Where the marriage has lasted more than 10 years, or under some family violence situations and support is needed to meet the "minimum reasonable needs" of the spouse, the court may order alimony/support for up to three years.  If a spouse is disabled or responsible for a adult disabled child, the support may continue beyond 3 years. Usually what you will see is a three year order with a review at the end.


For Smart Divorce in Texas


Diane

Temporary Spousal Support or Alimony

Texas courts routinely order temporary alimony or spousal support (terms used interchangeably) during the pendency of the divorce (from the day of filing the petition until the day the divorce is granted)  How much is ordered depends on the earnings and expenses of each spouse as well as which court your case is set in.  Where child support is being paid, the guideline level of child support is normally first calculated. Then spousal support is determined.

For Smart Divorce in Texas

Diane   (817)285-2855

Happy New Year

Well, another year has passed. I was reflecting to a client this week how much initial custody determinations have changed since I first started practicing 28 years ago. Back then, it was a given that if you had a stay-at-home Mom (and it was always the Mom) her getting primary custody and temporary use of the house was a given. Not so much the case now. Not that the norm has flip flopped or anything, but the result is determined by the judge who is hearing your case. And these days, the value system and beliefs of the various judges regarding this important issue vary widely. It is important to hire an attorney who practices regularly in the county where your case is. Part of what you are purchasing is a sort of "institutional" knowledge, not purely knowledge of the laws.

If you need more information about child custody in the Tarrant County, Texas area, please call my office for an appointment at 817-285-2855.

From Smart Divorce in Texas

Diane M. Wanger