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Mar
21

Taxes 2014 : Who Is Entitled To Use The Tax Exemption on Children After a Divorce?

As we now approach the deadline for filing our 2014 federal income tax return, many divorced parents are asking this question, “Which parent may legally claim their children on their tax return”? This question has become complicated with the rise in fathers’ rights, expansion in non-custodial parents visitation periods, and advance parenting schedules allowing children to spend quality if not equal time with both parents throughout the year.

In the past the Internal Revenue Code provided that the custodial parent was allowed to claim the minor children on his/her federal income tax return. Mom was usually the custodial parent and Dad usually had the children every other weekend.

The Internal Revenue Code states that the parent with whom the child lived with for the greater number of nights during the year is entitled to claim the dependency exemption.

If during or following a divorce in final judgment, the two divorcing parents agree that one parent shall claim the child as a dependent in odd numbered years and the other parent in even numbered years, or if the divorcing parents have more than one child, one parent shall claim some children, while the other parent shall claim the other children, this agreement in your final divorce decree will be honored by the IRS.

If your divorce was final before 2008, just attach the final divorce decree to your tax return. If your divorce was final after 2008, your ex-spouse must fill out IRS form 8332 which provides the name of your children that you can claim on your federal income tax return.
I you are divorced in 2014 and have questions please contact your tax adviser or go to the website http://www.irs.gov/Forms-&-Pubs for more information.

By Nacol Law Firm | Property and Asset Division
DETAIL
Jan
26

Texas Child Support Guidelines Update

PLEASE READ UPDATE (2019)
Texas Child Support Guidelines Change-
Effective Sept. 1, 2019

Effective September 1, 2019 The Texas Child Support Division of the Attorney General increased the Maximum child Support under the Texas Child Support Guidelines from $8,550 to the “new cap”of net monthly resources to $9200 annually. This change in the law will increase the amount of maximum child support from of $1,710.00 to $1,840.00 monthly (20% of $9200. For one child)
CLICK TO READ MORE ON THIS UPDATE 

PRIOR GUIDELINES
On September 1, 2013: Important Texas Child Support Guideline Changed!

The Texas Child Support Division of the Attorney General increased the “CAP” on net resources for purposed Child Support from the past amount of  $7500 to be $8550, which became effective Sept. 1, 2013.

This “Cap Increase” affects any child support case filed or pending after September 1, 2013.

Under the Texas Family Code §154.125 the guidelines for Child Support are as follows:

(a) The guidelines for the support of a child in this section are specifically designed to apply to situations in which the obligor’s monthly net resources are not greater than $8,500 or the adjusted amount determined under Subsection (a-1), whichever is greater.

(a-1) The dollar amount prescribed by Subsection (a) above is adjusted every six years as necessary to reflect inflation. The Title IV-D agency shall compute the adjusted amount, to take effect beginning September 1 of the year of the adjustment, based on the percentage change in the consumer price index during the 72-month period preceding March 1 of the year of the adjustment, as rounded to the nearest $50 increment. The Title IV-D agency shall publish the adjusted amount in the Texas Register before September 1 of the year in which the adjustment takes effect. For purposes of this subsection, “consumer price index” has the meaning assigned by Section 341.201, Finance Code.

(a-2) The initial adjustment required by Subsection (a-1) shall take effect September 1, 2013. This subsection expires September 1, 2014.

(b) if the obligor’s monthly net resources are not greater than the amount provided by Subsection (a), the court shall presumptively apply the following schedule in rendering the child support order:

CHILD SUPPORT GUIDELINES
BASED ON THE MONTHLY NET RESOURCES OF THE OBLIGOR

  • 1 child 20% of Obligor’s Net Resources
  • 2 children 25% of Obligor’s Net Resources
  • 3 children 30% of Obligor’s Net Resources
  • 4 children 35% of Obligor’s Net Resources
  • 5 children 40% of Obligor’s Net Resources
  • 6+ children Not less than the amount for 5 children

Depending on the number of other children an obligor has a duty to support, the percentage of child support may be lower. For example, if the obligor was previously married and has 1 child to support in the previous marriage, the amount of support paid for one child before the court decreases to 17.50 percent. See the chart below.

 

 Net resources are determined by deducting the following from the obligor’s income:
1. Social Security Taxes;
2. Federal Income Tax based on the tax rate for a single person claiming one personal exemption and the standard deductions;
3. State Income Tax;
4. Union Dues (if such deductions are being withheld); and
5. Expenses for Health Insurance Coverage for Obligor’s Child(ren) (if such deductions are being withheld).

See Updated Texas Child Support Guidelines and Infographic , provided by Dallas Texas Attorney Mark Nacol, of the Nacol Law Firm PC

By Nacol Law Firm | Child Support For Fathers
DETAIL

TIS THE SEASON FOR FILING A TEXAS DIVORCE ?

Welcome to January, the Divorce Month of the New Year! After a bad holiday season, many people have made the decision to file for divorce. The most popular months for filing divorce in the United States occur in January through March.

Going through a Divorce is painful no matter what the circumstances. When you decide to start the Texas Divorce Process, make sure you are financially prepared. Financial planning helps you in making sound decisions and start to prepare for your post-divorce life.

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 the marriage.

Financial Documents needed when preparing for a Texas divorce:

  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
    -Account number
    -Amount owed
    -Monthly payment
    -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
    -Legal Descriptions
    -Mortgage Companies and Loan Servicers (Name, Address, Telephone Number, Account Number, Balance of Note, Monthly Payments)
    -Current fair market value
    -Appraisals
  5. Motor Vehicles (including mobile homes, boats, trailers, motorcycles, recreational vehicles; exclude company owned):
    -Year
    -Make
    -Model
    -Value
    -Name on title
    -VIN Number
    -Fair Market Value
    -Name of creditor (if any), address and telephone
    -Persons listed on debt
    -Account number
    -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
    -Account Number
    -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 Benefits:
    -Exact name of plan
    -Address of plan administrator
    -Employer
    -Employee
    -Starting date of contributions
    -Amount currently in account
    -Balance of any loan against plan
    -Documents
  9. Publicly traded stock, bonds and other securities (include securities not in a brokerage, mutual fund, or retirement account):
    -Number of shares
    -Type of securities
    -Certificate numbers
    -In possession of
    -Name of exchange which listed
    -Pledged as collateral?
    -Date acquired
    -Tax basis
    -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
    -Policy Number
    -Insured
    -Type of insurance (whole/term/universal)
    -Amount of monthly premiums
    -Date of Issue
    -Face amount
    -Cash surrender value
    -Current surrender value
    -Designated beneficiary
    -Other policies and amendments
  11. Closely held business interests:
    -Name of business
    -Address
    -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, work interests, and producing and non-producing oil and gas wells:
    -Name of mineral interest
    -Type of interest
    -County of location
    -Legal description
    -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
    -photos
    -purchase 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)
DETAIL
Nov
24

Love and Marriage ….and Divorce!

With the U.S. marriage rate at an all-time low, 51% of adults were married in 2011 (US Census Bureau), only 29% of all divorced adults say they would marry again with women definitely in the negative on remarriage.  Americans are also not in a hurry to marry.  The median age of first marriages is a record high of 29 for men and 27 for women (US Census Bureau).

So what about the 48% of adults currently married?  A new divorce report by the Slater and Gordon Law Firm in England who surveyed 1000 divorcees has reflected some very interesting findings:

  • The average person spends about 2 years thinking about getting a divorce before they file.

  • During this time the average person spent 18 months really trying to fix their marriage and working to try to save the marriage.

  • 53% discussed divorce with someone besides their partner before filing.

  • 36% spoke to an attorney before deciding to file a divorce

  • 76% tried to fix their marriage problems before deciding on a divorce

  • 53% said their split was amicable and 45% said they are still friends

  • 31% have no contact with their previous spouse at all!

     How would you fit into this survey?

The Nacol Law Firm PC has expressed 8 of the top causes of Divorce!

  1. Lack of communication: A successful relationship constantly keeps in touch! When there is a loss of open ended communication on all issues affecting the marriage, families may fall apart quickly. Share your feelings, tell your partner what is happening, and listen to your partner.

  2. Money and Finances: If there are constant money problems or major disagreements on financial issues, you may have a serious martial problem. A team effort at all times bodes for a better marriage.

  3. Alcohol and Drug Addiction:  Addiction is one of the most damaging and challenging problems spouses will ever face in a marriage. Because additive behavior touches everyone in a family most marriages are severely damaged years before a decision is reached to end the marriage.

  4. Domestic Violence/ Intimate Partner Violence: Family Violence is the willful intimidation, physical and/or sexual assault & battery or serious mental and verbal abuse perpetrated by one intimate partner against another. The frequency and severity of domestic violence varies dramatically and may include physical or sexual violence, threats, and emotional abuse. The violence is often accompanied by irrational and controlling behavior and is intended to result in total dominance and control over the other spouse /intimate partner or other family members.

  5. Trust and Infidelity Issues: Do you truly trust your spouse? Are their jealousy issues that occur with one spouse when other people are involved in your lives? A successful marriage is very difficult absent trust.  If you do not trust your spouse the marriage is vulnerable!

  6. Spouse cannot understand or fulfill your needs and desires: this includes personal and sexual needs and common courtesies to each other. We all have different needs and desires. If you or your partner won’t acknowledge each other’s needs and try to accommodate, the marriage is vulnerable!

  7. Inability to resolve conflict: Often couples have very serious trust issues with each other and cannot get past the needs of one vs the needs of the family.  Smart couples will seek out a 3rd party “referee” to help resolve these differences before the marriage is irretrievable.

  8. Children: Enough said! The married couple must decide on a united front in child rearing and discipline.  The child cannot be in charge or subject to multiple contradictory directives!

Deciding to divorce is a very sad and financially devastating family decision. If you and your spouse are still at the point to possibly change things for the better, explore all other opportunities! There was a reason for the initial attraction and your family will love you for it.  Otherwise, consult a qualified legal professional who can help guide you through this trying period.

 

By Nacol Law Firm | Filing for a Divorce
DETAIL

Visitation with your children for the 2014 Holidays – Texas Standard Visitation Guidelines

Now is the time to start working on your Holiday 2014 Schedule for visitation with your children during this wonderful time of year! We would suggest that you review your individual order to see if you have specific provisions concerning visitation.  Because many families have specific situations that occur during this special time, this visitation time is the most modified area in the Standard Possession Order. The Holiday schedule will always override the Thursday or Weekend schedules.

Here is a reminder of the current Texas Family Law Code’s Standard Possession Order for the Holidays.

  • 153.314. Holiday Possession Unaffected by Distance Parents Reside Apart.
    The following provisions govern possession of the child for certain specific holidays and supersede conflicting weekend or Thursday periods of possession without regard to the distance the parents reside apart. The possessory conservator and the managing conservator shall have rights of possession of the child as follows:

Texas Family Law Code’s Standard Visitation Guidelines for Christmas Break:
(1) the possessory conservator shall have possession of the child in even-numbered years beginning at 6 p.m. on the day the child is dismissed from school for the Christmas school vacation and ending at noon on December 28, and the managing conservator shall have possession for the same period in odd-numbered years;
(2) the possessory conservator shall have possession of the child in odd-numbered years beginning at noon on December 28 and ending at 6 p.m. on the day before school resumes after that vacation, and the managing conservator shall have possession for the same period in even-numbered years;

Texas Family Law Code’s Standard Visitation Guidelines for Thanksgiving:
(3) the possessory conservator shall have possession of the child in odd-numbered years, beginning at 6 p.m. on the day the child is dismissed from school before Thanksgiving and ending at 6 p.m. on the following Sunday, and the managing conservator shall have possession for the same period in even-numbered years;

Texas Family Law Code’s Standard Visitation Guidelines for Child’s Birthday:
(4) the parent not otherwise entitled under this standard order to present possession of a child on the child’s birthday shall have possession of the child beginning at 6 p.m. and ending at 8 p.m. on that day, provided that the parent picks up the child from the residence of the conservator entitled to possession and returns the child to that same place;

Texas Family Law Code’s Standard Visitation Guidelines for Father’s Day:
(5) if a conservator, the father shall have possession of the child beginning at 6 p.m. on the Friday preceding Father’s Day and ending on Father’s Day at 6 p.m., provided that, if he is not otherwise entitled under this standard order to present possession of the child, he picks up the child from the residence of the conservator entitled to possession and returns the child to that same place;

Texas Family Law Code’s Standard Visitation Guidelines for Mother’s Day:
(6) if a conservator, the mother shall have possession of the child beginning at 6 p.m. on the Friday preceding Mother’s Day and ending on Mother’s Day at 6 p.m., provided that, if she is not otherwise entitled under this standard order to present possession of the child, she picks up the child from the residence of the conservator entitled to possession and returns the child to that same place.

Texas child visitation orders may differ from the norm to accommodate family situations so you should always check your decree first! If in doubt about your holiday visitation time, contact a family law attorney who can help you to make sure nothing happens to affect this special season with your children. ‘Tis the Season To Be Jolly’!

By Nacol Law Firm | Possession of Children
DETAIL

Please contact father’s rights Dallas Attorney Mark Nacol, or father’s rights Dallas Attorney Julian Nacol with the Nacol Law Firm P.C., for legal insight to your rights as a father. Both attorney Mark Nacol, and attorney Julian Nacol , provide counsel in the area of family law including divorce, father’s rights, interstate jurisdiction, child support, child custody, visitation, paternity, parent alienation, modifications, property division, asset division and more. Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization. Our attorneys at The Nacol Law Firm P.C. serve clients throughout Texas, including Collin, Dallas, Denton, Ellis, Grayson, Kaufman, Rockwall and Tarrant counties and the communities of Addison, Allen, Arlington, Carrollton, Dallas, Fort Worth, Frisco, Garland, Grapevine, Highland Park, McKinney, Mesquite, Plano, Prosper, Richardson, Rowlett and University Park, Murphy,Wylie, Lewisville, Flower Mound, Irving, along with surrounding DFW areas.

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