Megan B. Rachel, Attorney At Law

Family Law, Divorce, and Child Custody Law Firm

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property division

Avoiding common financial mistakes in divorce

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On behalf of The Rachel Firm posted in Divorce on Wednesday, July 9, 2014.

Texans who’ve been through divorce know it’s as much a financial process as an emotional one. Getting a bad deal on property division and alimony can affect a person financially for years to come. One financial writer recently put together a list of common financial mistakes people-especially women over age 50-tend to make in divorce.

One of the most common mistakes is not fighting hard for a share of a spouse’s retirement benefits. Retirement assets can be divided between the spouses by means of a Qualified Domestic Relations Order. A QDRO is a court order allowing some of the assets to be transferred to the other spouse, and a new account opened in that spouse’s name, while maintaining the tax advantages of the plan.

Another mistake spouses commonly make is fighting to keep the house instead of a share of the other spouse’s retirement benefits. The house may have emotional value, but it’s future value is hard to predict. Maintaining the house will also likely cost some money over the years. Assets in a retirement plan, on the other hand, might be substantial and it is more likely they will increase in value.

Finally, it can be a mistake to fight for alimony instead of a piece of the retirement plan. Especially in Texas, alimony is limited and its duration is short. It is also considered taxable income.

Spouses over 50 who are contemplating divorce need solid legal and financial advice. Avoiding common financial mistakes can make a big difference in the quality of post-divorce life.

Source: Forbes, “The Big Money Mistake Divorcing Women Make,” Kerry Hannon, July 3, 2014

Actress Emilie de Ravin, husband to divorce

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On behalf of The Rachel Firm posted in Divorce on Wednesday, July 16, 2014.

Texas fans of the TV show “Lost” may remember actress Emilie de Ravin, who appeared in the series.  De Ravin has also appeared in the popular shows “Once Upon a Time” and “Roswell.” Unfortunately, her personal life does not appear to be going as well as her professional life: last week her husband of 11 years filed divorce papers in Los Angeles.

Her husband listed irreconcilable differences as the reason for the split.  In states like California or Texas, which allow no-fault divorce, irreconcilable differences, sometimes referred to as insupportability, is the only ground that has to be alleged.  The couple has no children, so they will not have to deal with issues of child support and child custody.  They will, however, have to deal with the issue of property division.

The couple resides in California, which is a community property state like Texas.  In a community property state, property acquired by either party during the marriage is generally considered community property and therefore must be divided between the parties.  The division is not necessarily 50-50 as the judge has the discretion to make any division that is fair and just to both parties.

Not all property acquired during a marriage is community property.  Property that a spouse inherited from a deceased person, or property received as a gift, for example, is considered separate property and stays with the spouse who owns it.  Property acquired before the marriage is also considered the separate property of its owner.

A couple about to go through a dissolution of marriage has a lot of difficult decisions ahead of them.  But by remaining civil to each other and working with experienced professionals, they can get through the process with a minimum of stress.

Source: Los Angeles Times, “Emilie de Ravin of ‘Lost,’ husband Joshua Janowicz divorcing,” Nardine Saad, July 11, 2014