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Archive for the ‘Property’ Category

Are Punitive Damages Community Property?

February 1st, 2012 No comments

woodlands divorce separate propertyIn every Woodlands Divorce case your attorney will review the assets and debts that exist between you and your spouse. After the assets and debts are identified your Woodlands Divorce Attorney will then work with you to discover which assets may qualify as separate property and can benefit from the special protections available to separate property in a divorce. If you or your spouse received funds as part of a personal injury settlement, a portion of the settlement or award may have been categorized as punitive or exemplary damages. Are punitive damages community property or separate property? Read more…

A $69,594.06 Divorce Decree Mistake

January 3rd, 2012 No comments

woodlands divorce attorneyIf you see the commercials for legalzoom and other document sellers you might think legal documents are simple or all the same. They may want you to think that, but remember: if there is a mistake in your Woodlands Divorce documents then you will be the one suffering the consequences and not them. Some of these mistakes are quickly discovered and can be fixed, while others remain undiscovered for years and then surface to create unintended results when it is too late to fix them.

One ex-wife recently found herself in court again ten years after her divorce was finalized. The reason: her divorce decree was flawed and a piece of property worth $69,594.06 that she thought was hers was paid out to her ex-husband’s second wife. Let’s take a look at the details.

Husband and ex-wife divorced after forty years of marriage. The divorce decree awarded husband and ex-wife each one-half of the yearly payments from husband’s pension savings plan. Following the divorce, husband met and married second wife. After husband‘s death ten years later, the balance remaining in the pension savings plan was paid to second wife as the designated beneficiary of the account.

Ex-wife filed suit against second wife claiming that, pursuant to the divorce decree, one-half of the plan’s balance was hers. The Court noted that although the decree distributed the pension plan’s yearly payments, it did not provide for the plan‘s balance. Thus, the effect of the defective decree’s language left the balance as undivided community property. As a result, ex-wife became a cotenant of her one-half share of the undivided balance, and sued second wife to obtain her half of the property.

A Costly Mistake

In this case the ex-wife successfully recovered the one-half of the retirement account that she believed was hers. She had to incur additional legal fees and the uncertainty of going to court to do it, however. In addition, the second wife made a critical mistake and accidentally waived a legal argument that may very well have resulted in the court deciding the case in her favor. Keep this in mind if you find yourself having to choose between the $299 legalzoom divorce and an experienced Woodlands Divorce attorney. Contact us today at (832) 592-7913 if you need experienced legal help with your Montgomery County divorce case.

If you would like additional information, check out our free Woodlands Divorce Guide.

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Alimony Changes – Duration and Amount

September 5th, 2011 No comments

Woodlands Divorce LawyerThe Texas Legislature made extensive revisions to the alimony and spousal maintenance provisions that went into effect on September 1. If you are filing for divorce in a marriage that lasted longer than ten years make sure your Woodlands Divorce Lawyer is familiar with these new rules. Today we will look at the changes made to the amount of alimony and the duration of alimony.

The previous maximum amount of alimony was $2,500 per month. Now, the maximum is $5,000 per month. The minimum amount remains at 20% of the average monthly income. This change impacts spouses that earn more than $12,500 per month because their amount of alimony payments just went up. For example, under the old system if the spouse earned $15,000 per month the maximum alimony payment was still $2,500. Now, the maximum alimony payment is $3,000 which is 20% of monthly income.

The duration of alimony and spousal maintenance payments was also increased. The previous limit was three years, no matter what. Now a sliding scale is in place.

  1. If the marriage lasted at least 10 years but not more than 20 years, the court can order alimony and maintenance payments to continue for five years;
  2. If the marriage lasted at least 20 years but not more than 30 years, the court can order alimony and maintenance payments to continue for seven years;
  3. If the marriage lasted more than 30 years, the court can order alimony and maintenance payments to continue for ten years.

Remember folks, there is no legal separation in Texas and you are still married for the purposes of calculating alimony and maintenance payments until the court enters your final divorce order. Dragging your feet just got potentially a lot more expensive. Contact us today at (832) 592-7913 if you are contemplating dissolving your marriage and have questions concerning your financial future and whether you could be eligible or liable for spousal support under the expanded provisions of the new law.

If you would like additional information, check out our free Woodlands Divorce Guide.

If You Refinanced Your Separate Property Home, Read This!

March 25th, 2011 No comments

woodlands divorce attorneyDid that house you owned before marriage and then refinanced during marriage become community property? This is a very common question that comes up in a Woodlands Divorce, usually as the result of rushing through the refinance process without considering the impact certain documents can have on characterizing the house as separate property or community property. Separate property is always separate property, that much is true; however, if you change the title on separate property you may have accidentally given up the protection separate property has in a divorce.

As we’ve discussed before, separate property is property acquired before the marriage. It is important to identify separate property because in a divorce case the judge does not have the authority to award your ex-spouse your separate property, the judge can only divide community property. As long as the name on the title of separate property does not change it will remain separate property. Unfortunately in a refinance transaction the lenders usually end up having people name their spouse as co-owners of the property. During the refinance process your lender may have told you that it would be quicker or easier to have both spouses on everything. That may be true for them, but it could have put you in great jeopardy.

If you accidentally made your spouse a co-owner of the home during the marriage then you have opened yourself up to a hornet’s nest of community property litigation in your Woodlands Divorce case which could have been avoided with some careful planning ahead of time. Contact us today at (832) 592-7913 if you need to protect your rights to separate or community property.

Check out our free Woodlands Divorce Guide if you need more answers.

Collaborative Divorce Testimonial #1

January 5th, 2011 No comments

woodlands divorce attorney testimonialI have never had anyone endorse or say positive things about going through a litigated divorce, particularly if there are children involved. The destruction and turmoil can be very horrible on a personal level. At best, if you litigate your divorce you may end up with a little bit more property than the other side but you will have incurred some substantial personal turmoil to get it and you have to ask, is it worth it?

Collaborative Divorce is your alternative to the destruction that accompanies a traditional litigated divorce. When you choose a collaborative divorce you are taking the first and biggest step towards moving on with your life rather than spending 9-12 months (or more) in front of a judge rehashing the past and assigning blame. This is something that many people feel is worth talking about as you can see below:

Divorce is a painful event, but if there was a way to lessen the pain, collaborative divorce is the way to go. My wife and I had decided to end our 10-year marriage. We wanted to do it as amicably, fairly and easily as possible. Traditional divorce creates barriers between the parties and advocates antagonistic behavior. In the end of a traditional divorce, a judge decides based on the evidence presented. Collaborative divorce lessens the adversity and puts the power to finish the relationship back in your hands. The process is legal and logical. Lawyers help you work out any legal issues, but all of the separation of property is decided by you and your ex-spouse. It truly is a revolutionary way to approach what is arguably the worst event besides death. – Director of System Engineering at Large IT Firm

Call The Shea Law Firm at (832) 592-7913 if you need to get a divorce without the destruction that goes along with litigation.

The Woodlands Divorce Guide

December 16th, 2010 No comments

woodlands divorce attorney adviceAre you considering divorce and are not sure where to begin?

Has your spouse already filed for divorce and you are not sure how to protect yourself?

Are you wondering:

  • How much child support is involved in your divorce?
  • Is spousal maintenance going to be awarded in your divorce?
  • How often will you see your kids after the divorce?
  • What is separate property and what is community property?
  • What happens to retirement accounts in a divorce?

To help answer some of the most common questions I am proud to announce the release of my Woodlands Divorce Guide available for free download. You can get your copy by clicking on the link below.

The Woodlands Divorce Guide

If you have a question that is not answered in this version of The Guide, post your question in the comments below or contact us and we will consider it for inclusion in future editions.

Why Your Personal Injury Award May Be Community Property

December 4th, 2010 No comments

woodlands divorce injury settlementA recovery that you obtain for personal injuries during your marriage is generally considered to be your separate property and not community property in a Woodlands divorce. There is one significant exception however. A personal injury award can be made up of several different components. There may be an award for pain and suffering as well as for lost wages. The portions of a personal injury award that belong to the community estate include damages for lost wages, medical expenses, and other expenses associated with injury to the community estate. Once an item is identified as community property it becomes subject to division between you and your ex-spouse in the divorce.

Who Must Prove What?

When a spouse receives a settlement from a lawsuit during marriage, some of which could be separate property and some of which could be community property, it is that spouse’s burden to demonstrate which portion of the settlement is his or her separate property. This is important to remember, the person claiming the personal injury award as community property does not have to prove a thing unless the other spouse is able to establish the award is separate property by clear and convincing evidence. Call (832) 592-7913 and speak with a Woodlands Divorce Lawyer about protecting your rights if you or your spouse settled a lawsuit during your marriage.

Who Pays the Student Loans?

November 18th, 2010 No comments

More and more people make use of student loans to help pay for their education. As recently as 2009 almost 60% of Texas students graduated college with student loan debt. If you add on graduate school student loan debt can easily exceed $100,000. If your soon to be ex-spouse has student loans with a significant balance you may be very concerned about how the student loan debt can be allocated as part of a Woodlands Divorce. With the great amount of discretion given to judges, you are right to be concerned. Fortunately, a recent case sheds some light on how the courts are examining student loan debt and divorce.

Background

Albert and Sophia began living together in 1987. One year later, Sophia gave birth to their only child. To help cover living expenses, Sophia’s educational expenses, and the expenses of Albert’s asbestos consulting business, Sophia applied for and received student loans totaling over $90,000. In February 1994, Albert and Sophia married, and in 2002, Sophia filed a petition for divorce.

The Trial

In a surprise ruling, the trial court ordered Read more…

Trial Court Overturned on Finding Husband Wasted Community Property

November 11th, 2010 No comments

Wasting community property is one valid reason a judge may order a disproportionate division of community property in a Montgomery County Divorce. A common example of wasting community property in a divorce would be if one spouse makes substantial gifts to a new girlfriend, boyfriend, or anyone outside the marriage using community property. If you take money or property that is community property and transfer it outside of the community estate then you may have a “waste” situation which opens the door for a disproportionate division of community property. One court recently ruled that a husband who used community property while the divorce was pending to purchase a new home and car for himself was guilty of waste. The appeals court disagreed. Let’s see why.

Background

Wife and husband married in 1990. In 2006, wife and children fled the family home alleging family violence by husband. The couple filed for divorce in 2007. During divorce proceedings, husband sold community property and used those assets to pay community debts and to purchase a home and an automobile for his personal use. Following trial, trial court awarded wife a disproportionate share of the community estate due to husband’s “wasting of community assets” in violation of a court order.

Husband appealed on multiple grounds including that trial court abused its discretion in finding that he wasted community assets and making a disproportionate property division and money damages award based on that finding.

Waste and Community Property Division

Under the family code, a trial court in a divorce proceeding is charged with ordering a division of the community estate in a manner that the court deems “just and right,” having due regard for the rights of each. In dividing the community estate, the trial court can consider several nonexclusive factors including whether one party wastes community property. Waste occurs when Read more…

Fighting Off the Downward Spiral

October 16th, 2010 No comments

It happens a lot in the divorce process. Feelings of mistrust, betrayal, anxiety and more that start out small and manageable end up growing. They continue to grow as your case goes on and eventually grow out of control. This is how your Woodlands Divorce case can end up transforming from everyone sitting at a table working to resolve ongoing problems to everyone in the metaphorical boxing ring trying to knock each other’s lights out. It happens more often than you might think. The Downward Spiral.

Parents with children usually have the most to lose if they let their divorce slide down that out of control path. Property can be replaced, but restoring Read more…

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