Why Is a Qualified Domestic Relations Order (QDRO) Important in a Texas Divorce?

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When couples go through the process of divorce, they typically have significant concerns about their financial future.  The breakup of a marriage may mean less household income available to each spouse, higher expenses associated with dual households and less value in marital assets available to each party.  The resolution of these monetary issues can have a substantial impact on the ability of a party to a divorce to start over with a firm financial foundation to build upon.  The division of the retirement assets often will constitute the most valuable marital assets of a married couple so it is extremely important to understand how retirement accounts like 401K plans, individual retirement accounts (IRAs), pensions and annuities are handled in divorce.

Regardless of which spouse’s name is on the retirement account, it will be a marital asset subject to community property distribution under Texas family law.  Even if contributions to the retirement account began prior to marriage, contributions made during the marriage and any appreciation in value resulting from such contributions will be community property.  It is important to have legal advice when dealing with the division of a retirement account because depending on the type of retirement asset, specific federal and state laws may impact the plan.  Whether a retirement account is a defined benefit plan or defined contribution plan will determine the present value or potential value of the retirement asset.  Tax consequences must also be considered because the timing of tax consequences may impact the spouse’s differently if a substantial disparity in income exists between the parties.

One of the biggest mistakes made by parties who try to handle their own divorce is the failure to prepare a qualified domestic relations order (QDRO).  This is the primary tool used in marital dissolutions to ensure that the retirement plan is divided appropriately and that the spouse of the named beneficiary actually receives their share of the retirement plan funds.  Even if the divorce judgment specifically divides the retirement between the parties, the administrator of the retirement plan will typically pay all of the proceeds of the plan to the named beneficiary if no QDRO is served on the plan administrator.

While a party may have recourse against the beneficiary spouse if the named beneficiary receives the entire retirement because no QDRO was filed, this can be a difficult and expensive course for obtaining one’s share of the retirement plan.  QDROs have the additional benefit of avoiding adverse tax consequences that might accrue from early withdrawal or transfer of funds from certain retirement accounts.

Although QDROs often are indispensable tools for dividing a retirement account during a Texas divorce, they must be drafted according to very specific rules that are promulgated by the plan administrator so it is important to seek legal representation to ensure that your rights are not compromised.  Texas divorce attorney Alex Tyra offers a free consultation during which he can advise you about division of retirement plans and QDROs.  We invite you to contact us in our Longview office at 903-753-7499 or visit our website and submit a case contact form.

A Primer for Division of Assets and Debts in a Texas Divorce

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Property division is an important aspect of most divorces, but the distribution of community property assets and debts between spouses takes on special importance in Texas because of our state’s limitation on availability, amount and duration of spousal maintenance (referred to as “alimony” or “spousal support” in other states).  This primer on property division in divorce provides an overview, but the best way to obtain legal advice about property division issues that pertain directly to your situation is to contact experienced Texas divorce attorney Alex Tyra and to schedule a free consultation.

Distinguishing Community Property from Separate Property

There are two types of states for purposes of property division: (1) equitable property states and (2) community property states.  Because Texas is a community property state, we will focus our discussion on community property.  Community property includes all assets and debts acquired during marriage that are transferred via inheritance or gift to one spouse.  Both spouses have an undivided and equal interest in all community property.

Separate property, which is not subject to division by a Texas court in divorce, includes all property and debts acquired by each spouse prior to marriage or received during the marriage by means of gift, devise, bequest or other form of inheritance.  If property is acquired during the marriage, it is presumed to be community property unless clear and convincing evidence is presented that the property is separate property.  Separate property is not subject to division during divorce but a substantial disparity between the spouses during divorce may be considered when a court is try to determine a fair and equitable division of community property.

Identification, Characterization and Valuation of Assets and Debts

The initial step in dividing assets and debts in a Texas divorce is identifying all assets and debts and characterizing this property as community or separate.  Sometimes property is not exclusively community or separate because these disparate types of assets have been commingled.  Commingled property can present the most challenge because it has both a separate and community property component.  Common examples include pensions, 401K accounts and real properties that are owned by one spouse during marriage but receive contributions from the income of either spouse during marriage.  Income of either spouse during marriage is community property.  When community property is used to improve real estate or enhance the value of a 401K through direct investment and appreciation from such contributions, this creates an asset with both a community and separate property component.

The process of valuing property involves preparing a sworn inventory and appraisement, which is akin to a personal financial statement.  The value of retirement accounts, investment accounts, bank accounts and similar assets are based on a current statement.  Assets like real estate and business interests may require experts to provide a valuation.  Because business valuation experts and real estate appraisers can differ greatly in their opinions regarding valuation of an asset, it is important to be careful in selection of experts for valuation purposes.  If the judge or jury must make a determination on value, an expert who can provide a clear and effective justification for a valuation can be extremely important.

Factors in Dividing Property in a Texas Divorce

It is important to understand that the court is not required to divide community property equally but rather reach a fair and just division.  There are a range of factors that a Texas court will consider when dividing community property, including but not limited to the following:

  • Duration of the marriage
  • Relative earning capacity of each spouse
  • Contributions made to the community estate
  • Comparative value of separate property of the spouses
  • Age of each party
  • Waste of assets committed by either spouse
  • Education of each party
  • Fault in causing the breakdown of the marriage
  • Party with whom the children reside

When both spouses have similar earning capacity and similar expectations regarding duration of employability based on age, the division might be equal but may range to sixty-forty where one spouse has substantially greater earning potential.   The division can be even more unequal depending on the specific facts of the case.  Texas divorce attorney Alex Tyra offers a free consultation during which he can advise you about property divisions or other divorce issues.  We invite you to contact us in our Longview office at 903-753-7499 or visit our website and submit a case contact form.

Key Mistakes to Avoid When Navigating a Texas Divorce

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While retaining a competent experienced Texas divorce attorney can provide an effective way to protect your interests during a divorce, any party to a divorce also can take steps to avoid certain mistakes that adversely impact the outcome of one’s marital dissolution.  If you have questions about how to handle certain issues, your attorney can provide legal counsel and assist you in avoiding pitfalls that can result in undesirable outcomes on issues like alimony, conservatorship, timesharing, property division and other key issues.  However, at the Texas family law office of Alex Tyra, we often hear from prospective clients that do not contact us until after they have made critical errors.  We have provided an overview of mistakes to avoid if you are involved in a Texas divorce proceeding:

Be Reasonable and Businesslike: Many of the most high conflict divorce cases arise out of unrealistic expectations and unnecessary animosity.  It is understandable that the divorce process will involve emotions like anger, jealousy, fear and anxiety that may hinder constructive positive solutions.  However, both spouses lose when they run up unnecessary legal fees and litigation expenses because one side or the other takes a position that is not reasonable given the possible spectrum of orders that a judge might issue.  We frequently hear prospective clients that insist they want “sole custody” or “no spousal maintenance.”  It is the exception rather than the norm when such orders are granted so you should let an experienced divorce attorney help you develop realistic expectations.

Provide Your Attorney with Requested Information: There are disclosure requirements and discovery obligations for both parties in a Texas divorce.  When your Texas divorce attorney requests documents or information, it important to provide this information promptly so that your attorney can respond to discovery and provide mandatory disclosures.  The best practice is to gather financial documents, title documents, paystubs, retirement plan statements, tax returns, paystubs, monthly bills and mortgage statements because your attorney will need these to develop settlement positions on property and debt distribution, spousal maintenance, child support and other issues.

Perceiving Your Spouse as Confident: Because of the long duration of many marriages, it is natural to feel comfortable disclosing information with your spouse during an amicable divorce process.  Even in an amicable divorce, it is important to understand that a marital dissolution is an adversarial proceeding.  You should be careful providing confidential and proprietary information with a spouse because it may be used against you.  It is imperative that you consult your Texas divorce attorney before executing any document provided by your spouse.

Focus on the Forest Not the Trees: Because you may be overwhelmed by strong emotions in a divorce, it is easy to get bogged down in winning short-term battles while damaging your long-term prospects.  It is important to step back when you are being spurned on by intense emotions so that you do not make a poor decision that runs counter to your best interests.  Divorce attorneys can provide sound legal advice which put issues in proper perspective.

If you are involved in a marital dissolution, Texas family law attorney Alex Tyra offers a free consultation so that he can help you understand your rights and options.  We invite you to contact us in our Longview, Texas office at 903-753-7499 or visit our website and submit a case contact form.

Why Domestic Violence Allegations Are Important in Texas Child Custody Cases

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While an amicable relationship with the other parent in a Texas divorce is usually in the best interest of minor children and both parents, sometimes this is simply not a realistic alternative.  The process of developing timeshare and custody arrangements may be difficult when certain issues are present, including an uncooperative co-parent, domestic violence, substance abuse and prior acts of abuse or neglect.  When issues of the fitness of a parent or willingness of a parent to cooperate in promoting a positive relationship with the other parent arise, this can promote acrimonious child custody disputes.  Domestic violence allegations in particular are extremely common in the context of child custody disputes in a divorce or paternity action.

Domestic violence can have a significant impact on child custody and parenting plan determinations in a Texas divorce.  Texas courts apply the best interest of the child standard when developing parenting plan and custody orders.  Although Texas courts generally regard close and continuing relationships with both parents to be in the best interest of minor children, courts may limit contact by a parent found to have a history of domestic violence toward the other parent.  Texas law bars a judge from awarding joint custody to both parents if there is credible evidence of domestic violence by one of the parents toward the other parent.

One type of evidence often used in Texas to establish domestic violence is a protective order (i.e. restraining order) issued against a parent.  It is important to understand that a protective order can be obtained on an ex parte basis with virtually no notice.  Although restraining orders obtained on this basis are of short duration, they can prevent you from having access to your children and even result in you exclusion from the family residence until a formal hearing.  Even if you have never been charged with spousal assault or any other form of domestic violence, the other parent may attempt to provide other forms of evidence, such as police reports and witness testimony.

While domestic violence is common and constitutes a very serious issue, sometime domestic violence allegations are used in a Texas family law case as a sword rather than a shield.  If you are involved in a divorce involving children or a paternity action where domestic violence is alleged, it is essential that you seek prompt legal advice so that your relationship with your children is not compromised by custody and parenting plan arrangements predicated on unfounded domestic violence claims.

Whether you are involved in a divorce with contentious child custody issues or you are seeking to reach an amicable child custody and visitation settlement, Texas family law attorney Alex Tyra offers a free consultation so that he can help you understand your rights and options.  We invite you to contact us in our Longview, Texas office at 903-753-7499 or visit our website and submit a case contact form.

Balancing Amicable Negotiations & Litigation in Texas Child Custody Cases

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If you and your spouse are one of the 80,000 couples annually that navigate the divorce process, you may be apprehensive and stressed about an uncertain future.  While the divorce process can be emotionally trying, less conflict usually is better for both spouses and their children where possible.  An experienced Texas divorce attorney can assist you in establishing mutually beneficial resolutions to key issues like spousal support, division of community assets and debts, child custody, visitation and other applicable issues.

When Longview family law attorney Alex Tyra represents clients, he provides legal advice so that his can clients can make informed decisions about when to take an aggressive position to obtain their desired outcome.  Because of Mr. Tyra’s extensive experience handle divorce cases before Texas judges, he can suggest a range of potential outcomes and insight into how a judge will typically rule on a particular issue.  This permits clients to make informed decisions and avoid animosity on issues where there is little if anything to be gained by bitter contentious litigation.

If your divorce will involve developing custody and visitation arrangements for minor children, the value of dealing reasonably with the other parent cannot be overstated.  One important factor that Texas divorce judges look to when developing custody and visitation arrangements is a parent’s ability and willingness to encourage a continuous and ongoing relationship with the other parent.  When family law judges are presented with evidence that a parent is attempting to alienate the child from the other parent, the court will often give such conduct significant weight when developing custody and visitation orders.  The court will apply the “best interest” of the child standard and will generally presume that frequent and continuing contact with both parents is in the best interested of minor children.

While taking the “high road” and seeking an amicable arrangement on custody and visitations orders with the other parent is always preferable because it is easier on minor children, some issues generally promote more contentious disputes.  If either parent has a history of domestic violence, child neglect or abuse, substance abuse or similar types of issues, the safety and well-being of the children may necessitate limited access by one parent or even supervised visitation.  The parent against who such allegations are made often will aggressively contest such restrictive arrangements.  If you are involved in a divorce with these sorts of child custody issues, it is important to have an experienced Texas child custody lawyer because the case may proceed to trial.

Whether you are involved in a divorce with contentious child custody issues or you are seeking to reach an amicable child custody and visitation settlement, Texas family law attorney Alex Tyra offers a free consultation so that he can help you understand your rights and options.  We invite you to contact us in our Longview, Texas office at 903-753-7499 or visit our website and submit a case contact form.

Is a Prenuptial Agreement Right for You?

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Although an increasing number of couples are entering into prenuptial agreements prior to marriage, there is still a feeling among many that prenuptial agreements undermine the full commitment or trust that is fundamental to a marital relationship.  When considering a marital partnership, it can be helpful to draw an analogy to business partners – marriage is a particularly expansive form of business partnership involving both the personal and professional aspects of a couple’s lives.

Few business partners would consider entering into a partnership without an agreement that delineates matters like the initial contributions of each party, sharing of profits, responsibility for liabilities, management duties, process for voting or separation and so forth.  When considered in this light, the notion of entering into a far more extensive partnership like marriage without establishing the expectations of each party if the partnership should dissolve seems almost reckless.  A prenuptial agreement is not a hedge against commitment to one’s marriage, but insurance that provides security and predictability if disaster strikes.  It would be silly not to buy insurance because of a fear that acknowledging the risk might make it more probably that something catastrophic might occur.

These types of marital contracts can be a way to provide both parties with peace of mind, fairness and predictability when the relationship is strong and secure as opposed to trying to resolve issues through contested litigation if a marriage does deteriorate.  When divorce proceedings become highly contested because the parties cannot agree on key financial issues like alimony (spousal support, spousal maintenance), property division, responsibility for debts, business ownership and other important matters involving your finances and property, the conflict can drive up attorney fees and litigation expenses.  When this occurs, there is less of the marital estate left for the parties to split and use when rebuilding following a divorce.

While the value of a prenuptial agreement in Texas may derive merely from the predictability it provides, some situations make it extremely prudent to consider such a pre-marital agreement, including the following:

  • Either spouse expects to receive a substantial inheritance
  • One spouse will earn a significantly higher income or be the sole income earner
  • Either party enters the marriage with substantial assets and/or has a high net worth
  • A marital partner has an established business
  • One or both partners have prior marriages with children
  • A spouse owns property especially income producing property
  • Either partner has a relatively high debt to income ratio compared to the other spouse
  • Husband or wife has a high risk occupation

While not every Texas marital partnership justifies a prenuptial agreement, it is important to seek legal advice regarding the merits of a “prenup” depending on your specific situation.  Texas family law attorney Alex Tyra offers a free consultation during which he can advise you about whether a prenuptial agreement is right for you.  Mr. Tyra also handles challenges to prenuptial agreements.  We invite you to contact us in our Longview office at 903-753-7499 or visit our website and submit a case contact form.

 

How To Protect Your Credit During Your Divorce

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Today, one out of three relationships in the United States will ultimately end with divorce. Divorce is now becoming a pretty common aspect of life for many people, and some individuals are even bound to become divorced more than once. However, many couples in the past, and even still today do not plan for the future accordingly, especially that of a divorce. When you become divorced you are severing your ties with your former spouse personally, and legally. However, you are also doing so in another aspect, financially. So, what should you do pertaining to your credit, and credit cards when you are in the midst of a divorce?

Credit and Its Correlation To Divorce

The majority of individuals today have a credit card, whether it is one for emergencies, or a few for the incentives and rewards that come along with using it. However, it can also be said by today’s standard that the majority of credit card users are also in debt. Yet, some people do know how to manage their credit cards and bills accordingly. When you have a credit card, or other items that you pay monthly bills on you begin to have a credit score, or credit ranking. This number can help you make large purchases in the future such as a car, a home, or maybe help you financially in the future as well.

Your Name, Your Money, Your Rights

However, during a divorce, many cases come to light that show that when spouses had a joint credit card, or a credit card in the other’s name they not only went overboard spending, but also devastated the other’s credit score in the process. Many people think that their credit score can recover from this, or they can explain the circumstances as to why it’s dropped so low. Yet, many businesses, and companies don’t deal with your circumstances at the time, but what the number actually tells them.

In this case, you can easily avoid in credit issues when dealing with your divorce by doing a few simply things. To start, you should cancel any credit cards that your spouse holds that are in your name, or cancel those that are in both of your names since you are now becoming divorced. Next, you should get your credit report from three major credit agencies such as TransUnion®, Experian® and Equifax. After that, make sure that once a year you get a credit report to make sure that there are not any unforeseen changes.

When you or a loved one is in the midst of a divorce and have experienced credit card problems, debt, or damage to your credit report speak to an experienced divorce attorney today in order to make sure your rights are properly fought for.

Contact The Law Office of Alex Tyra, P.C. For a Free Consultation When you need assistance from an experienced attorney or if you need to better understand you legal options, contact The Law Office of Alex Tyra, P.C., at (903) 753-7499.  All initial consultations are free.  Phone calls are answered 24 hours a day, 7 days a week.

 

 

How To Protect Your Credit During Your Divorce

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Today, one out of three relationships in the United States will ultimately end with divorce. Divorce is now becoming a pretty common aspect of life for many people, and some individuals are even bound to become divorced more than once. However, many couples in the past, and even still today do not plan for the future accordingly, especially that of a divorce. When you become divorced you are severing your ties with your former spouse personally, and legally. However, you are also doing so in another aspect, financially. So, what should you do pertaining to your credit, and credit cards when you are in the midst of a divorce?

Credit and Its Correlation To Divorce

The majority of individuals today have a credit card, whether it is one for emergencies, or a few for the incentives and rewards that come along with using it. However, it can also be said by today’s standard that the majority of credit card users are also in debt. Yet, some people do know how to manage their credit cards and bills accordingly. When you have a credit card, or other items that you pay monthly bills on you begin to have a credit score, or credit ranking. This number can help you make large purchases in the future such as a car, a home, or maybe help you financially in the future as well.

Your Name, Your Money, Your Rights

However, during a divorce, many cases come to light that show that when spouses had a joint credit card, or a credit card in the other’s name they not only went overboard spending, but also devastated the other’s credit score in the process. Many people think that their credit score can recover from this, or they can explain the circumstances as to why it’s dropped so low. Yet, many businesses, and companies don’t deal with your circumstances at the time, but what the number actually tells them.

In this case, you can easily avoid in credit issues when dealing with your divorce by doing a few simply things. To start, you should cancel any credit cards that your spouse holds that are in your name, or cancel those that are in both of your names since you are now becoming divorced. Next, you should get your credit report from three major credit agencies such as TransUnion®, Experian® and Equifax. After that, make sure that once a year you get a credit report to make sure that there are not any unforeseen changes.

When you or a loved one is in the midst of a divorce and have experienced credit card problems, debt, or damage to your credit report speak to an experienced divorce attorney today in order to make sure your rights are properly fought for.

Contact The Law Office of Alex Tyra, P.C. For a Free Consultation When you need assistance from an experienced attorney or if you need to better understand you legal options, contact The Law Office of Alex Tyra, P.C., at (903) 753-7499.  All initial consultations are free.  Phone calls are answered 24 hours a day, 7 days a week.

 

 

Deciding Upon Your Home In A Divorce

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Divorce is an aspect of life that many couples, and their families are beginning to have to come to terms with more each day. When an individual gets married they usually do not have divorce in the back of their mind, or how to properly take care of themselves before, during, and potentially after the marriage is over. However, divorce is not only something that individuals have to deal with personally, but also legally. With studies and statistics now concluding that one out of three couples in the United States become divorced it is important to begin with the end in mind. However, what should you do concerning your home when you are in the process of a divorce?

“Home Is Where The Heart Is”

It has always been said that, “home is where the heart is”. Yet, what really happens when the home is now becoming divorced? Usually, divorce is about your legal separation from your former spouse, including separating your assets accordingly. The majority of the time, your home, and many things that you purchase, or invest in are usually under both spouses names, which usually means that they can either be split in half, or that a barter of sorts can take place. However, when you have a home you need to consider a few factors before actually keeping, or selling your home.

Weighing The Options

When a divorce is taking place people usually have two common emotions: anger, and sadness. These two emotions the majority of the time can cause people to make rash decisions that they normally wouldn’t. When it comes down to your home individuals either want to keep, or sell it during their divorce. However, there are issues with both if they are not thought out properly. When an individual wants to sell their home quickly in the midst of a divorce they usually take a price that is well cut under what their home is actually worth, or do not fully consider what they have to do after they sell their home. When an individual wants to keep their home they are usually still in a state of emotional attachment to the past relationship, which includes the house. However, a spouse can always want to keep the house in order to make the children feel stability during the divorce, due to a school system, their commute to work, or a multitude of reasons.

If you or a loved one that is going through a divorce are considering either action it is important to sit down with an experienced divorce attorney today in order to talk about your options, and the potential with each decision.

Contact The Law Office of Alex Tyra, P.C. For a Free Consultation When you need assistance from an experienced attorney or if you need to better understand you legal options, contact The Law Office of Alex Tyra, P.C., at (903) 753-7499.  All initial consultations are free.  Phone calls are answered 24 hours a day, 7 days a week.

 

 

Helping Your Child Adjust To Your Divorce

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Today, divorce is now statistically likely to occur in one out of every three marriages within the United States. With that being said you will come face to face with divorce at one point or another, whether it is your own, a friend or family members marriage, and even some of your work associates. However, divorce is a very unique degree of the law, which can have many different, and varying outcomes for couples. When you deal with a divorce you are not only dealing with the past, and present, but the future as well. Yet, what should you do in order to make sure that your child is not negatively impacted by your divorce?

Children, Not Assets

When you are going through a divorce at the end of the day you are no longer in a relationship, but are now a single individual once again. However, unlike before, you now have responsibilities that you must deal with, care for, and take care of in any which way possible, such as your children. However, children understand and deal with divorce differently than their parents, or other individuals that are involved with it. Many times children falsely believe that they are the reason why their parents have separated, which usually is not the case at all.

Helping You and Your Child

In order to make sure that your children understand that your divorce was due to your relationship issues, and not them is extremely important. Children need to know that there is stability still left within their lives. They are going from coming home, having dinner, and going to bed with both of their parents in the same house each night to having to pack a bag in order to go see another. However, there are a few things that you can do as a parent to make sure that your child’s needs are met during, and after a divorce. Some include, but are not limited to:

  • Informing your child’s school so they can beware of any behavioral changes that may affect your child’s achievement in school, or their extracurricular activities.
  • Make sure to put both you and your spouse on emergency contact forms to make sure that both parents respond to their child.
  • Inform both parents of the child’s activities, and achievement in order to make sure that they feel loved, and appreciated.

Contact The Law Office of Alex Tyra, P.C. For a Free Consultation When you need assistance from an experienced attorney or if you need to better understand you legal options, contact The Law Office of Alex Tyra, P.C., at (903) 753-7499.  All initial consultations are free.  Phone calls are answered 24 hours a day, 7 days a week.