When a married couple in Texas chooses to end their relationship, they may have to decide how to split the marital home. This is not always an easy decision for a Texas couple to make as each partner could have an emotional attachment to the house. By asking the right questions, it's possible to make an educated decision about what to do with such an asset.
When people in Texas decide to divorce, there can be long-lasting economic consequences that linger beyond the emotional and practical effects of the end of a marriage. Many people are particularly concerned about the threat of financial disaster. For women in particular, scholars have noted that divorced women see their income fall by over a fifth without recovering. On the other hand, data shows divorced men seeing their income rise by around 33 percent.
When business owners in Texas go through a divorce, they may face particular challenges. Many divorces carry serious financial implications that can have far more long-lasting effects than the psychological and practical consequences. However, when one of the assets involved in the divorce is a privately owned business, the situation can become even more complex.
If a couple in Texas is getting a divorce and one of them owns a business, there may be several complicated issues to consider in the process of property division. The business will first need to be valued, and there are several different ways of doing this. The value might be based on the income, the market or the asset. This process may involve not just looking over records but touring the facilities and interviewing management. If one person brought the business into the marriage, the valuation might need to be based on the appreciation of the business since the marriage.
A qualified domestic relations order is a type of court order that a couple in Texas might need if they are dividing a retirement account in a divorce. A QDRO allows distributions from a 401(k) or a pension plan without penalties or taxes. It is not necessary with an IRA, but there may be other regulations. For example, a distribution from an IRA should be rolled into another IRA.