The overhaul of the U.S. tax code brought a radical change for many Americans, especially those who filed for divorce after Jan. 1. One of the most significant changes is how alimony is taxed. The new law no longer allows the paying spouse to deduct the payments, while the receiving spouse does not have to claim it as income.
If you are in a marriage relationship that has run its course you probably are motivated to get things over and done with as quickly as possible. The desire to escape the emotional pressure is surely high. But to address all the factors of a Texas divorce, you need to view things through a wide-angle lens.
Some wise person once said, "Fast is fine, but accuracy is everything." Depending on whom you choose to go with, that person was either an ancient Greek historian or old Wild West legend, Wyatt Earp. For the purposes of this blog, we'll go with Earp. He's someone with whom most Texans can better identify.
Not too long ago, when people in Houston and the rest of Texas talked about alimony, everyone pretty much understood what was being talked about. Alimony was that amount of money that ex-husbands paid to their ex-wives as part of a divorce settlement. At the time, divorce was fault based, women weren't in the workforce supporting themselves and the presumption was that ex-wives were owed the support of their ex-husbands for the rest of their lives.
Alimony, or spousal maintenance, in Texas went through a dramatic change in 2011, when a new law went into effect. The new law allows for a much more balanced and fairer approach.