In most marriages, one spouse or the other will be the manager of most of the assets of the parties' separate and community property estates. This “trust theory” has been developed in a long line of cases and provides that the spouse who is managing the assets of the marriage will be treated as a … [Read more...]
Your Social Security and Retirement After Divorce
Divorce is one of life's most stressful experiences. Its impact is lasting even reaching into retirement. Navigating the intricacies of Social Security is one of the many lingering complexities in which a financial adviser can help. This article, written by Dana McLaughlin, was originally … [Read more...]
Avoiding Community Property Laws in Tax Returns
I often am asked by someone going through a divorce whether they should prepare their tax return using the Married-filing-joint method (MFJ) or Married-filing-separate (MFS) method. My first response is that MFJ is usually the method which results in the least amount of tax paid by the couple. … [Read more...]
More on Constructive Fraud and Waste Claims Benefiting a Wronged Spouse
Earlier this month I blogged about claims of waste and constructive fraud. Here is how such claims can benefit the wronged spouse. The Texas Family Code now provides specific guidance on how a divorce court can remedy fraud committed by one spouse on another. Section 7.009, Fraud on the … [Read more...]
A New Twist to Claims of Waste and Constructive Fraud
A recent Houston divorce case provides a new twist to claims of waste or constructive fraud. In that case, the wife basically asked the question, where did all my husband’s earnings go? The court awarded the wife a judgement of $196,000 for wasting community funds because the husband could not … [Read more...]
So What’s Next After Divorce?
Once the divorce is finalized, what's next? With all the work and coordination involved in untangling the marriage and the finances, it might be tempting to consider things done once the Final Decree is entered. However, in order to ensure success post-divorce, consider these four steps. Develop a … [Read more...]
Is A Divorce Coming in the New Year?
Typically there is a surge of divorce filings in January every year after a difficult holiday season and think about making big changes in their lives. This recent Market Watch article is a good read for those considering divorce soon. It includes information on how to prepare yourself with … [Read more...]
Community Property, Separate Property, and Tracing in Divorce
Community and Separate Property Texas has adopted the community property system. Only eight other states have such a system: California, Arizona, New Mexico, Louisiana, Washington, Idaho, Nevada and Wisconsin. Under the community property system, all property on hand at the date of marriage, or … [Read more...]
Understanding Your Business Valuation
A business valuation is generally based on the following three approaches: Asset based approach Market based approach Income based approach This blog will focus on the income based approach due to its wide application. But, keep in mind, a thorough valuation will include all three … [Read more...]
How Good Is That Business Valuation?
Consider the following language. “We relied on information received as fairly reflecting the operations of XYZ Company and have made limited investigation as to the accuracy and completeness of such information. We, as valuation consultants, have not verified this information as part of this … [Read more...]