Spousal Maintenance Can Benefit Payor and Recipient
While post-divorce spousal maintenance (alimony) is ordered only in specific circumstances in Texas and is limited in both amount and duration, divorcing couples can voluntarily agree to a higher amount of maintenance as part of their property settlement. Often, the payment of post-divorce spousal maintenance can benefit both parties. Kimberly D. Levi, a family law attorney in Houston, Texas, often contemplates the use of voluntary post-divorce spousal maintenance, under the proper circumstances, to equalize the division of an estate.
In Texas, courts can also order temporary spousal support while a divorce is pending. Temporary support may be available in this circumstance when one or the other of the parties to the divorce requires additional temporary income in order to meet that spouse's basic financial needs. Depending upon the particular facts of a case, the court may award temporary support for only a few months or for the entire pendency of the case. Temporary support does not have tax consequences either for the payor or the payee.
Creative Ways to Use Spousal Maintenance
Even though family courts may not always require a spouse to pay post-divorce spousal maintenance, or may only require limited payments, spousal maintenance can still be used as a tool to divide a marital estate in creative ways.
Suppose you are the primary wage earner and a significant amount of your savings is in the form of retirement accounts, which are community property under Texas law. Your goal may be to keep as much of your retirement savings as possible. Your spouse, on the other hand, may have a greater need for present monthly income to meet his or her monthly living expenses for a period of time. In this instance, it may be more advantageous to your spouse to give up all or part of his or her interest in your retirement in exchange for the payment of a certain amount of spousal maintenance.
In any analysis of whether post-divorce spousal maintenance might be helpful to equalize a division of property, tax consequences are paramount. Spousal maintenance is a taxable event for the person who receives it and tax-deductible for the person who pays it.
Schedule a Lawyer Consultation
To discuss the possible benefits of spousal maintenance with attorney Kimberly D. Levi, please call 888-324-6330 or fill out the contact form on this site. Ms. Levi has more than 15 years of experience assisting families in finding sustainable solutions for the family in Houston, Texas, and the surrounding area.
