| This article provides a brief overview on Texas law | | | | settlement tool. Since alimony is generally taxable to |
| concerning post-divorce alimony in Texas. Laws differ | | | | the receiving party and deductible to the paying party it |
| from state to state and individual circumstances vary, | | | | can be often structured so that it is advantageous to |
| so you should consult with a qualified family law | | | | both parties.For example, a party in a high tax bracket |
| attorney in your area for specific advice on your | | | | can agree to make monthly alimony payments in |
| particular situation. Additionally, this article deals only | | | | exchange for a more favorable property division. If the |
| with post-divorce alimony. It does not address | | | | receiving party is in a lower tax bracket, the overall |
| temporary alimony, which is provided for under a | | | | income tax paid could be significantly lower than what |
| different provision of the Texas Family Code. | | | | it would be otherwise. Another factor to consider is |
| Two Kinds of Alimony: Contractual and Court | | | | how rarely Texas trial courts order maintenance, |
| Ordered maintenanceThere are two kinds of | | | | absent an agreement. The statute allows for |
| post-divorce alimony in Texas: contractual alimony and | | | | maintenance only when the specific statutory |
| court ordered maintenance. The Texas Family Code | | | | circumstances have been proven. There are several |
| also provides authority for the court to order | | | | appellate cases that have reversed trial court |
| temporary alimony which occurs while a divorce is | | | | decisions ordering maintenance when the requesting |
| pending. However, temporary alimony is outside the | | | | party did not provide sufficient proof that the standard |
| scope of this article and will not be | | | | had been met. In cases where there is a large amount |
| addressed.Contractual AlimonyContractual alimony is | | | | of community property, one of the most effective |
| based on an agreement between the parties in their | | | | arguments in attempting to defeat a maintenance |
| divorce decree. For tax purposes, contractual alimony | | | | claim is that the requesting party will have ample |
| is normally deemed income to the receiving party and | | | | resources to provide for their needs since the party |
| is deductible from the income of the paying party. | | | | will receive a significant amount of assets from the |
| Since contractual alimony must be based on an | | | | division of property.Another common argument used |
| agreement of the parties, there are no limits to the | | | | to defeat a maintenance claim is that, during the |
| possible amount or duration of the alimony. Court | | | | pendency of the divorce, the requesting party has not |
| Ordered Maintenance Court ordered maintenance is | | | | made significant attempts to either obtain employment |
| provided for by Texas Family Code Chapter Eight. | | | | or obtain training that would allow the party to obtain |
| Although actually awarded in only a small percentage | | | | employment. As an example, lets take a divorce case |
| of Texas divorces, the court has the right to order one | | | | where the wife is requesting maintenance on the |
| spouse to pay the other post-divorce maintenance in | | | | grounds that the marriage is longer than ten years and |
| either of two circumstances:1. The payor spouse either | | | | that she lacks the earning ability to meet her minimum |
| received deferred adjudication or was convicted of a | | | | reasonable needs. If the case has been pending for |
| crime constituting family violence within two years of | | | | several months and at the time of |
| the filing of the divorce case, or2. The parties have | | | | trial she has still made no effort to obtain employment |
| been married at least ten years and the receiving | | | | or improve her job skills, it will be a difficult claim to |
| spouse has some kind of financial limitation (disability, | | | | succeed upon. The court is unlikely to find that she is |
| unable to work because caring for the party's child, or | | | | "unable" to meet her reasonable minimum needs and |
| lacks earning ability to meet minimum reasonable | | | | more likely to believe that she is unwilling to take the |
| needs).The monthly amount of court ordered | | | | necessary steps in order to provide for her own |
| maintenance is capped at the lesser of: a) $2,500 or b) | | | | support.ConclusionAlimony in Texas, while rarely |
| 20% of the monthly payor's gross income.The | | | | ordered, is an important and complicated issue. It can |
| maximum duration of court ordered maintenance is | | | | be used as an effective settlement tool and can |
| three years. The only exception is when maintenance | | | | potentially be a significant trial issue. For someone |
| is ordered as the result of a disability, in which case the | | | | involved in a Texas divorce case with a potential |
| duration can potentially extend indefinitely. | | | | alimony issue, the issue should be discussed in detail |
| ConsiderationsWhere there is a large disparity in | | | | with an experienced divorce lawyer. |
| incomes alimony can sometimes be used as a useful | | | | |