Preparing for a Texas Divorce: Assets
Going through a Divorce is painful no matter what the circumstances are. Before you get into the Texas Divorce Process, reduce expense, stress and conflict by making sure you are financially prepared. Planning ahead helps you in making sound decisions, start preparing for post-divorce life, and avoid many post-divorce pitfalls. Below is a list of items you need to gather before counseling with an attorney. Financial Documents are a must to show what your true assets and liabilities are in your marriage.
We have included many assets that you may or may not have. This is only a financial checklist of multiple assets for your review so you will not miss an important asset that needs to be reported.
1. Tax Returns (at least three years) or Tax Liens and all IRS related documents
2. Wills and Trusts with all attachments reflecting corpus and trust holdings
3. Listing of all liabilities (including mortgages, credit card debt, personal loans, automobile loans, etc.):
—Name of entity, address and telephone number
—Property securing payment (if any)
—Most current statements and account status of lenders
4. A Listing of all Real Property, address and location, including (includes time-shares and vacation properties):
–Deeds of Trust
—Notes including equity loans and second liens
—Mortgage Companies and Loan Servicers (Name, Address, Telephone Number, Account —Number, Balance of Note, Monthly Payments)
—Current fair market value
5. Motor Vehicles (including mobile homes, boats, trailers, motorcycles, recreational vehicles; exclude company owned):
—Name on title
—Fair Market Value
—Name of creditor (if any), address and telephone
—Persons listed on debt
—Balance of any loan and monthly payment
—Net Equity in vehicle
6. Cash and accounts with financial institutions (checking, savings, commercial bank accounts, credit union funds, IRA’s, CD’s, 401K’s, pension plans and any other form of retirement accounts):
—Name of institution, address and telephone number
—Amount in institution on date of marriage
—Amount in institution currently
—Names on Account
—Company loans and documents related to benefits
7. A listing of separate property (property owned prior to marriage, family heirlooms, property gifted, inherited property):
—Records that trace your separate property. These assets will remain yours if properly documented
8. Retirement & Pension Benefits:
—Exact name of plan
—Address of plan administrator
—Starting date of contributions
—Amount currently in account
—Balance of any loan against plan
9. Publicly traded stock, bonds and other securities (including securities not in a brokerage, mutual fund, or retirement account):
—Number of shares
—Type of securities
—In possession of
—Name of exchange which listed
—Pledged as collateral?
—Current market value
—If stock (date option granted, number of shares and value per share)
—Stock options plans and related documents
10. Insurance and Annuities Policies and Inventory:
—Name of insurance company
—Type of insurance (whole/term/universal)
—Amount of monthly premiums
—Date of Issue
—Cash surrender value
—Current surrender value
—Other policies and amendments
11. Closely held business interests:
—Name of business
—Type of business
—% of ownership
—Number of shares owned if applicable
–Value of shares
—Balance of accounts receivables
—Cash flow reports
—Balance of liabilities
—List of company assets
—Possible hobbies or side businesses that generate income
12. Mineral Interests (include any property in which you own the mineral estate, separate and apart from the surface estate, such as oil and gas leases; also include royalty interests, working interests, and producing and non-producing oil and gas wells:
—Name of mineral interest
—Type of interest
—County of location
—Name of producer/operator
—Current market value
—needs leases or production documents related to the asset
13. Money owed by spouse (including any expected federal or state income tax refund but not including receivables connected with any business)
14. Household furniture, furnishings and Fixtures
—purchase receipts and documents
15. Electronics and computers including software and hard drive
16. Antiques, artwork and collectibles (including works of art, paintings, tapestry, rugs, crystal, coin or stamp collections) Other large collections need to be appraised! (Guns, quilts, action figures, books)
17. Miscellaneous sporting goods and firearms
18. Jewelry including appraisals
19. Animals and livestock
20. Farming equipment
21. Club Memberships
22. Safe deposit box items
23. Burial plots including documents of ownership
24. Items in any storage facility
25. Travel Awards Benefits (including frequent flyer miles)
Despite the difficulties faced in a divorce, the children should not be placed in the center of the crossfire. During the divorce process, and sometimes following the divorce process, it is not uncommon for a parent to become so wrapped up in anger, vengeance or simply being “right” that they forget the effect the whole process is having on the children. Below are some behaviors to avoid and some suggestions to assist you with improving your communications during the divorce process:
- Do not use children as messengers between “mom” and “dad.”
- Do not criticize your former spouse in the presence of your children because children realize they are part “mom” and part “dad.”
- Resist any temptation to allow your children to act as your caretaker. Children need to be allowed the freedom to be “children.” Taking on such responsibility at an early age degrades their self-esteem, feeds anger and hinders a child’s ability to relate to their peers.
- Encourage your children to see your former spouse frequently. Promote a good relationship for the benefit of the child.
- Do not argue with your former spouse in the presence of the children. No matter what the situation, the child will feel torn between taking “mommy’s” side and “daddy’s” side.
- At every step during the divorce process, remind yourself that your children’s interests are paramount, even over your own.
- If you are the non-primary parent, pay your child support.
- If you are the primary parent and are not receiving child support, do not tell your children. This feeds a child’s sense of abandonment and erodes their stability.
- Remember that the Court’s view child support and child custody as two separate and distinct issues. Children do not understand whether “mommy” and/or “daddy” paid child support, but they do understand that “mommy” and/or “daddy” wants to see me.
- If at all possible, do not uproot your children. When a family is falling apart, a child needs a stable home and school life to buffer the trauma.
- If you have an addiction problem, whether it be drugs, alcohol or any other affliction, seek help immediately. Such impairments inhibit your ability to reassure your children and give them the attention they need.
- If you are having difficulty dealing with issues relating to your former spouse, discuss such issues with mental health professionals and counselors.
- Reassure your children that they are loved and that they have no fault in the divorce.
Though these steps are not all-inclusive, they will assist you in dealing with the complex issues of a divorce and hopefully minimize the impact of the divorce process on the children.
The year of 2020 will go down in history as the year Covid-19 Virus hit the world bringing serious illness and death, changing our normal way of life to mandatory quarantines of people at home or in place. Social and monetary upheavals have occurred since most of the population in the United States either now work from their home or have been furloughed from their jobs until the virus scare has subsided. This Virus has affected everyone in the United States and the World, and we are now being warned that our “Normal Way of Life” may not return until sometime in the future.
It is very important to set up a survival plan for any young family should either Mom or Dad die at an age where the children are still home and in need of support until they finish school or reach maturity.
You and your spouse/partner should discuss a financial plan that would protect your family in case of early death or total disability by either yourself or your spouse. Other times that are good to put a plan into place are during a pregnancy or when getting a divorce.
Here are some basic ideas to consider in a Family Financial Protection Plan:
- THE WILL: The will is the most important item in your Family Financial Protection Plan. By creating a WILL, you MAY ENSURE THAT YOUR ASSETS ARE INHERITED BY THE PEOPLE OF YOUR CHOOSING (YOUR FAMILY) RATHER THAN THE STATE’S IDEA OF WHAT IS PROPER. TO DIE WITHOUT A WILL IS TO DIE “INTESTATE”. This means that the State (Texas) will determine the percentage of property that each family member will inherit after the death. The process of administering an estate through probate court can take months or longer once a judge appoints an executor to take over the deceased’s financial affairs. During this time, the family may not have access to money left to them to pay the family bills from this estate. BIG PROBLEM!
After having a Will for both spouses/partners of the family executed make sure that an original copy is left with your attorney for safekeeping. Very Important! Have another original copy of your Will in a secure place where the executor or a family member will be able to retrieve it at the time of your death.
- POWER OF ATTORNEY AND PROXIES: At the time of making out your will, make sure both parents have a Health Care Advance Directive and a Living Will prepared and executed. You need to designate a first and second choice of a person over 18 years of age to be your proxy. Your Living Will is your intention for end of life care, such as when to have your doctors withhold treatment and let you pass or if you would like to be an organ donor. It is very important that these documents are with your Will and accessible to your proxies, since many times, if there is a serious accident or medical emergency, you or your spouse will not be able to make serious medical decisions regarding your life or death.
- BENEFICIARIES: When you meet someone, marry, or join in a domestic union, it is important that as to any financial accounts you have (bank account, retirement fund, 401K, trust fund, stocks bonds), you should change the beneficiary to your spouse/partner. It is also a good idea to have a second beneficiary, either a child or family trust, in case you and your spouse/partner were both in an accident and die. If your children are young do not make your beneficiary a guardian who promises to take care of your children. Set up a family trust which will support your children and a trusted trustee for the trust.
- GUARDIANSHIP: Another very important item in your will for parents of minor children under 18 years old is APPOINTING A GUARDIAN IN YOUR WILL FOR RAISING YOUR CHILDREN. There should be a mutual joint decision on who will take care of the children if both you and your spouse/partner are deceased. By setting up this preference in your will, the proceeding judge will usually honor your request when setting up a guardian for your children.
- INSURANCE: Life Insurance may be costly, but it ensures that if you or your spouse/partner dies young, the surviving spouse/partner will be able to have the physical means to allow a slowdown working a job to take care of your young family without financial worries. It is always suggested that you start an insurance policy on both parents when they are young and healthy to keep costs at a manageable amount. Many companies also offer disability insurance to replace a percentage of salary if an employee becomes incapacitated. Long-Term- Care Insurance is also an option.
Finally make sure that all important financial and personal documents are always kept up to date and located in a secure place where they can be found in case of emergency or death! Some of the most important documents: bank and financial institution accounts, insurance information, credit cards, retirement account with beneficiary information, bills and list of bills on autopay monthly, deed of house, title to cars, boats or etc., and safety deposit key.
*Always have an updated list of online accounts, passwords, and credentials to any cryptocurrency wallets.
Nacol Law Firm PC
8144 Walnut Hill Lane #1190
Dallas, Texas 75231
tel: 972 690-3333
Texas spousal maintenance can be a useful and effective tool in a divorce. A spouse lacking sufficient property or the means to provide for his/her minimum reasonable needs, may have awarded additional funds from the other spouse during the divorce and after to help rebuild his/her life following their divorce.
In September of 2011, the Texas Legislature revised and modified the requirements for spousal maintenance including the limits on amounts and duration of time allowed.
The eligibility requirements of the Texas spousal maintenance law is still considered one of the more restrictive spousal maintenance laws in the U.S.
To be able to be awarded Spousal Maintenance (statutory term for spousal support or alimony) you must be married and the spouse seeking support must lack sufficient property to provide for the spouse’s “minimum reasonable needs”. Also one of the following is required:
The recipient must be unable to earn sufficient income to provide for his or her minimum reasonable needs because of an incapacitating mental or physical disability.
The marriage lasted for 10 years or longer and the recipient lacks the ability to earn sufficient income to provide for his or her minimum reasonable needs.
The recipient is the custodian of a child of the marriage of any age who requires substantial care and personal supervision because of a physical or mental disability that prevents the spouse from earning sufficient income to provide for the spouse’s minimum reasonable needs.
The person ordered to pay support was convicted of or received deferred jurisdiction for an act of family violence during the pendency of the suit or within two years of the date the suit was filed.
The Maximum Amount of spousal maintenance the courts may award is $5,000 per month, although it is still limited to 20 percent of the Payer’s average Gross Monthly Income.
The Maximum Duration of Time for spousal maintenance is:
Five years if the marriage is 10 years or less and the eligibility for spousal maintenance is established by an act that constitutes family violence.
Five years if the length of marriage is at least 10 years but no more than 20 years.
Seven years if the marriage length was at least 20 years but no more than 30 years.
Ten years if the marriage length lasted 30 years or longer.
In cases where the spousal maintenance is awarded due to the mental or physical disability of the spouse or a child of the marriage, the court may order the maintenance continue as long as the disability continues.
The spousal maintenance awarded by the court is discretionary and may not always eliminate the shortfall of the requesting spouse’s monthly expenses.
What about Termination of Spousal Maintenance? The obligation to pay future maintenance terminates on the death of either party or on the remarriage of the spouse receiving the maintenance.
If the court finds that the receiving spouse cohabits with another person and is in a dating or romantic relationship in a permanent place of abode on a continuing basis, the court shall order the termination of the maintenance obligation.
Termination of the maintenance obligation does not terminate the obligation to pay any maintenance that accrued before the date of termination and this amount will have to be paid or a judgment will be enforced by the court.
If you are thinking about a divorce in Texas and have questions concerning your eligibility for spousal maintenance contact a legal professional to help you through this process.
Summer Visitation and Divorce? Your Sharing Attitude Will Be the Happy Force for your Children and Family!
We are approaching the end of the school year and the beginning of the long Summer Visitation! You have probably received the letter/ email from your EX requesting the setup for the Summer Visitation with the children.
Usually this is not a happy time for the primary care giving parent, but from personal experience, you need a break and letting the children spend some extended time with the other parent will give them a chance to share time and experiences with this parent and make them happy. Remember your children love you and nothing will change that fact!
From practicing family law for a long time now, I believe there are elements in divorce that will never change:
- You cannot make someone love you and stay with you if they choose not to.
- The only person that you can be completely responsible for in behavior is YOURSELF!
- If you choose to have a bad attitude and try to hurt your EX by alienating your children, then not only are you not winning the divorce game, but you are causing serious damage to your Children. Even if you win, you are a loser. The Kids didn’t ask for this Divorce, they are often stuck because Mom and Dad couldn’t be happy together!
After considering these ideas and deciding no, your children were not the case of the divorce, try giving some effort to help make your children happy during Summer Visitation with their other parent and not worry about you.
Here are my “New Divorce No No Rules” that will make the Summer Visitation happier for the entire family including your EX:
- No talking bad about the other spouse! This is your battle, not the kids! The kids are still related to their other parent and love that parent.
- Make this Summer Visitation an adventure for the kids. Mommy and Daddy are not together anymore, but the children should feel that they are going to spend this special time with their other parent without you acting mad or hurt. Never let the kids know that you are unhappy about the Summer separation and may not love them if they are happy! Let the kids look forward to a wonderful summer adventure with their dad or mom and don’t look back!
- Get with your ex-spouse and determine the Summer visitation schedule. Share this schedule with the kids so they will know what is going on and what time will be shared with both parents. Meanness will not be tolerated, be nice!
- Talk with the children on their ideas for the Summer Visitation. Maybe share these ideas with your EX. Remember: this is not about your feelings, it is about the love and needs of your family.
“The more you give in to the love of your family, the better you will feel in your heart.”
You, my friend, will eventually get over this hurt of the Summer separation with the kids and maybe get a little rest yourself. Before you know it, the kids will be back, school will start and your family’s live will go on, but it is always the decisions you make to help your children cope with this family split that will determine your true character as a parent and a person.
Hoping you and your family will have a wonderful Summer and this blog has help to put a smile on your face! —-Mark A. Nacol