Texas Divorce and Tax Issues
Tax implications are a frequently overlooked aspect of a divorce and can have a significant impact on the marital estate. A Texas divorce attorney experienced in recognizing tax issues can help you structure your divorce settlement in a way that minimizes the tax consequences and ensures that both parties receive the most value following the divorce.
Carter Morris, LLP represents clients throughout Texas with their most complex divorce and tax issues. Whether your estate is modest or you have significant assets to consider, we will help you create a divorce settlement that protects your financial future. Our founding partners are both board-certified in family law by the Texas Board of Legal Specialization and have extensive experience in cases involving high-net-worth divorce and complex property division.
Southeast Attorneys Experienced in Recognizing Tax Issues
If taxes are not considered as part of your overall divorce settlement, you may find that the value of your marital estate is diminished significantly after the divorce. Our lawyers are committed to helping you develop a divorce settlement that ensures your long-term financial health.
Though property and asset transfers during divorce are not considered taxable events, there can be tax implications after the divorce. When structuring your divorce settlement, we can assist you in taking into account the value of your assets after taxes.
Maintenance or spousal support is another important consideration, as it has tax implications for both parties. Until January 1, 2018, maintenance payments are tax-deductible for the payer and will be taxed as income for the receiving spouse. We can help you determine whether a settlement that includes spousal support payments would be beneficial to both parties.
Dividing Professional Practices in Texas
A professional practice could be one of the most valuable assets to consider during your divorce. Accurately characterizing, valuing, and dividing professional practices are essential to ensure that both parties receive a fair divorce settlement.
Dividing professional practices during divorce can pose unique challenges – such as when one party holds a professional degree or license. For example, a professional degree acquired during marriage is not considered community property; however, if community property was used to support one spouse in obtaining that professional degree or license, we can assist you in determining whether the other spouse may be entitled to compensation through spousal support or a greater share of another marital asset.
At Carter Morris, LLP, we represent doctors, lawyers, dentists, accountants, and other professionals – or their spouses – with the complex process of business valuation and dividing professional practices during divorce. Our Houston divorce attorneys have extensive experience handling high-net-worth divorce cases and dividing professional practices. While the majority of our clients come from southeast Texas and the greater Houston area, we have the resources to represent clients statewide.
Southeast Texas Divorce Attorneys
In Texas, a professional practice that was started during marriage is presumptively considered community property and is included in the value of the community estate during a divorce. However, even a practice that was started before marriage or with separate funds may be subject to claims during divorce if community property was used to fund or expand the business. Conversely, a practice started during marriage could be characterized as separate property, depending on the circumstances surrounding its formation and capitalization. We will assist you with the complex process of determining whether your professional practice is characterized as community property, separate property, or a mixture of the two.
Carter Morris, LLP works with forensic accountants and other business experts to accurately characterize, value, and divide professional practices. When determining the value of your private practice, important considerations include the value of the property and equipment, professional degrees and licenses, appreciation, goodwill, and tax consequences.
In most cases involving a professional practice, the business is not divided between parties. Instead, one spouse keeps the business and the other will receive an additional amount of other marital property to ensure a just and right division of marital property.
Contact Us
If you need high quality legal representation for a high asset divorce involving a professional practice, don’t hesitate to call Carter Morris, LLP at 713-626-3345.
Divorce Mediation, Collaborative Law, and Arbitration
When many people think of a family law issue such as divorce or a child custody dispute, they envision a long and contentious trial leading to a judge’s decision on what is right or wrong for a family. This doesn’t have to be the case. You do not have to choose between going to trial or “giving up” on major points. You do not have to put your family’s future in the hands of a judge or jury who are virtual strangers. Alternative Dispute Resolution (ADR) options – such as divorce mediation, collaborative law, and arbitration – exist to help you and the other party reach a mutually acceptable agreement that truly meets your needs and outcome goals.
Exploring the Benefits of Divorce Mediation, Collaborative Law, and Arbitration
Divorce Mediation
Divorce Mediation is a voluntary negotiation process in which both parties are present and participating. Each side may have legal counsel in attendance, or the parties may choose to have a neutral mediator oversee the communication process. The parties discuss issues at hand and work together to reach a compromise that they can agree to. If at any time negotiations break down, the case can move toward the courts.
Mediation is typically much less expensive than proceeding with open-ended negotiations or a divorce or child custody trial. Mediation can help recognize needs, restore communication and rebuilds damaged relationships. It allows parties to have a hand in deciding their future.
Collaborative Law
Sometimes called collaborative divorce or collaborative practice, Collaborative Law allows you and your spouse to work together to resolve your legal issues out of court. Each of you has your own collaborative family lawyer to coach and assist you to reach an agreement. You and your collaborative lawyers each sign an agreement at the outset that you will not go to court. This means your collaborative lawyers are completely committed to helping you reach a settlement.
In cases with complicated financial situations, the “collaborative team” will likely include one or more financial professionals who will work to untangle your financial issues.
Your collaborative team may also include a mental-health professional who will work with each of you to resolve any emotional issues that are preventing you from reaching an agreement.
Depending on how many issues you have to resolve, it usually takes several meetings with your collaborative professionals before you resolve all your issues. When that happens, your collaborative lawyers draft a divorce agreement.
Divorce Arbitration
In divorce arbitration, disputing parties agree to choose a trained decision-maker to hear both sides of the story. Much like orders from a judge, the decision of an arbitrator is binding. Arbitration is similar to trial, but is less formal and more private, as documents do not become public record. Parties choosing to enter into arbitration can speak for themselves, but generally prefer to have legal counsel present.
Arbitration is less costly and time-consuming than a full-fledged trial, often producing the same or better outcome results.
Divorce Mediation, Collaborative Law, and Arbitration Attorneys
At Carter Morris, LLP, in Houston, Texas, our attorneys are skilled in using various methods of alternative dispute resolution. With experience in divorce and family law mediation and arbitration, they can help you reach an amicable agreement that saves both time and money. To speak with one of our attorneys about settling your case outside of the courtroom, contact our office at 713-626-3345.