It isn't uncommon for couples who are getting divorced to have disputes over money. However, Texas residents may complicate matters when the money takes the form of Bitcoin or other digital currencies. According to a 2018 survey from the Global Blockchain Business Council, only 5 percent of respondents said that they currently owned virtual currency. However, another 21 percent were considering such an investment in the future.
Elderly divorce rates have been increasing over the past few decades. Back in 1990, about 10 percent of people over the age of 50 filed for divorce. About a quarter of people over 50 file for divorce today, giving them the name of "grey divorcees." What some people living in Texas might find surprising is that this is all happening against a backdrop of overall declining divorce rates in America.
The economic aspects of a divorce can be quite divisive for separating spouses. For many Texas couples, financial disagreements are what led to the divorce in the first place. If one or both partners own a business, the property division process can be even more complicated. Factors such as whether the business was started before or after the marriage and how much growth the business experienced during the marriage are relevant issues in determining how the assets will be handled.
Those in Texas and throughout the country who get a divorce may want to account for how it could impact their retirement. This is a good idea regardless of how long into the future a person wants to stop working. Almost any type of retirement account could be divided in a divorce even if there is only one name on the document. An IRA is an example of an account with one name on it that could be considered marital property.
When Texas couples with a high net worth choose to end their marriage, the resulting divorce can be complicated. Therefore, there are steps that they should take to make sure that they settle the divorce in as timely and clean a manner as possible. The first step is to create personal and professional priorities and advocate for them during divorce settlement talks.
When entrepreneurs in Texas get divorced, they face a unique set of financial challenges and concerns. Whether a divorcing entrepreneur is a sole proprietor or shares a business with his or her spouse, he or she needs to have a clear idea of the value of his or her company.
Spouses in Texas who are thinking about divorce should consider the financial issues linked to the end of their marriage. Financial concerns often keep people in an unhappy relationship long after they first want a divorce. However, some of the most important financial issues that come with the dissolution of a marriage aren't about which spouse walks away with which assets. Divorce can have a significant effect on taxes, so it is important to consider tax issues when going through the asset division process.
Retirement accounts often become a primary asset when individuals aged 50 and older in Texas choose to end a marriage, even more so than the marital home and other commonly sought-after assets. For older individuals planning to untie the knot in 2019 or beyond, the Tax Cuts and Jobs Act will change how certain assets are handled. The most noticeable change is with alimony payments, which will no longer be deductible for the payer and claimable as income for the recipient.
With gray divorces continuing to rise, older couples in Texas might be concerned with protecting their retirement plans. While a split is stressful on couples of all ages, older couples face having to make very difficult decisions that can impact their financial situation during retirement, when the risk of having to live on half the income with the same amount of expenses is a real possibility.
Unfortunately, many Texas couples must deal with divorce. Having a prenuptial agreement can greatly influence what will happen during the separation process. However, prenups can also strengthen a marriage by encouraging the parties to reduce uncertainty before walking down the aisle.