For approximately 70 years, the alimony tax deduction helped families reduce taxes after a divorce. With the tax reform act that went into effect at the beginning of 2019, the option for deducting alimony payments from taxable income for the paying spouse was eliminated. In light of this change, there are other ways Texas residents can help reduce their tax burdens after a high net worth divorce.
The process of blending two lives in marriage requires patience and a period of adjustment. However, the process of obtaining a divorce is often much more complex, especially when it's a high net worth divorce. Texas residents who are contemplating this step may keep three practical points in mind.
When the economy is floundering, many unhappy couples are more willing to tough it out, rather than divide limited resources. However, when the economy is experiencing an upswing, unhappy spouses are more inclined to file for divorce. Texas residents who are contemplating a high net worth divorce may benefit from professional advice when seeking to divide some of their valuable collections.
When the Bezos' announced their impending divorce, the story was carried on every news outlet. Though there have been many high net worth divorce filings among the wealthy and newsworthy, this one garnered much attention based on the value of the assets on the line. However, there are four key points from this divorce that may serve any Texas resident.
For most couples, a divorce is a fairly straightforward undertaking. Once custody and property division is settled, each individual goes his or her separate way and starts a new life without undo complications. However, in the new age of digital money, wealthy Texas residents may find that cryptocurrency adds complexities to an already complex divorce.
It was recently reported that the publicity-shy actor, Robert De Niro, and his long-time wife, Grace Hightower, want to end their 20-plus year union. De Niro filed the petition anonymously in order to avoid public notice. In Texas and across the country, whenever high-profile couples seek a complex divorce, it's often difficult to avoid public scrutiny.
Since Texas is a community property state, divorce courts typically divide most marital assets evenly between the spouses. This means that, with a few exceptions, any assets or funds the spouses acquire while they are married are on the table during the divorce unless the couple had a premarital agreement saying otherwise. Many spouses find their retirement funds, businesses and hard-earned money split in half during a complex divorce.
Support and guidance are essential for most Texas residents who are contemplating divorce. While the average divorce does require a variety of issues to be negotiated, a complex divorce can involve extensive assets, liabilities and other items that need to be taken into consideration. The choice of legal representation can be instrumental in navigating the process.
Computers, telephones, tablets and other electronic devices have replaced traditional forms of communication and document storage for many Texas residents. In many instances, married couples share accounts or at least passwords; they also may have their devices synced so that they can quickly and easily share information. However, when this is the case, and the couple finds themselves involved in a complex divorce, these same devices can become a privacy concern for the individual.
Who gets the house? How will the investment accounts be divided? How much will be paid in alimony? There are numerous financial decisions that the Texas couple must make when they become embroiled in a high net worth divorce.