An often overlooked asset that should be legally divided in a divorce settlement is the company or employer bonus. Many attorneys forget to address the community nature of such bonuses. Even if they are paid in the year following divorce, company bonuses are partially community property. Bonuses are paid for the preceding year’s services or performance. The settlement agreement or divorce … [Read more...]
Buying a house together before marriage
If you are beginning a new chapter in your life with a new partner, managing money may be the last thing on your mind. But it should be one of the first things you both consider as you begin to direct your separate finances into a mutual plan for the future. For example, buying a house together before getting married may seem like a good idea, yet there are pros and cons to consider. Buying a … [Read more...]
Social Security benefits and divorce
Decisions about filing for Social Security benefits will affect you financially for the rest of your life. And if you have gotten divorced in the past, you may qualify to receive Social Security on the work record of your ex-spouse. However, you must meet several requirements for qualifying to receive these benefits. You also must consider at what age to start taking those benefits. Here are … [Read more...]
Divorce and long-term care insurance
Being financially prepared for the possibility that you could require long-term care is an important part of retirement planning. Yet, too many people hope for the best and don't give this much thought. Our rapidly aging population, lengthening longevity and unpredictable health care costs highlight the need for long-term care insurance. So, couples getting a divorce, especially those approaching … [Read more...]
Dying Before the Divorce is Final
Do You Want To Leave Your Property To Your Spouse If You Die Before Your Divorce Becomes Final? Filing for divorce does not remove your spouse from your will as a beneficiary or an executor. You will have to wait until your divorce becomes final to remove your spouse from your will. Unless you want to take the chance on leaving your property to your spouse, you need to revoke your present will … [Read more...]
Estate Plan Modifications & Divorcing
Why You Should Not Wait Until You Are Divorced To Modify Your Estate Plan There is also a financial reason for changing your estate plan now. For example, let’s say you spend $500 for an estate plan. The estate plan is not an asset for the purposes of dividing the property in your divorce. What happens if you purchase a television for $500 instead of changing your estate plan during the divorce … [Read more...]
Financial Decisions and Incapacitation
Who Will Make Financial Decisions For You If You Become Incapacitated? If you have a durable power of attorney in your will, your spouse’s right to make financial decisions for you under the durable power of attorney is not revoked by filing for divorce. If this is not what you desire, make sure you update your will accordingly. You should revoke the present durable power of attorney, and name … [Read more...]
Medical Decisions & Incapacitation
Who Will Make Medical Decisions For You, If You Become Incapacitated? Your medical power of attorney is not revoked by the filing for divorce. A final decree terminates your spouse’s right to act under your medical power of attorney. If you have no medical power of attorney, the law makes your spouse first in the order of priority of persons who can make a medical decision for you, if you are … [Read more...]
No Will & You Die Before the Divorce is Final
What Happens If You Do Not Have A Will And You Die Before Your Divorce Becomes Final? If you do not want to take the chance of your spouse inheriting your property, you need a valid will that expresses your current intentions on who should receive your property and who will be your executor. The State of Texas has a plan for you if you die without a will. Your property will be given away based … [Read more...]
Protecting the Children
How Do I Protect My Children? A simple will is not sufficient if you have minor children. If you leave your property outright to your minor children, a guardian will need to be appointed. That is expensive and the guardian appointed is very likely to be your spouse. You should have a trust set up in your will. The trustee whom you have chosen will manage your children’s estate until the trust … [Read more...]