Frequently Asked Questions
Finances and your divorce
As you progress through the stages of your Texas divorce, you will undoubtedly have questions about how the decisions you and your soon-to-be ex-spouse make will impact your finances. The Law Office of Eric L. Fredrickson, P.C. in Houston, Texas has specific experience in these situations and can help you proceed smoothly with both your divorce.
Here are some answers to the questions we frequently receive about finances.
Divorce and property division
- Will I be entitled to part of the stock given to my husband as a gift during our marriage?
- If we divorce, will I receive credit for the down payment I made on our house?
- How will my savings account be divided during our divorce proceedings?
- Is my wife entitled to any of my accident settlement if we divorce?
- Can I argue that my wife earned some of the income from our small business?
- Will I be responsible for my husband's school loans?
- How do I handle a potential IRS inquiry about tax returns filed by my ex-husband?
Child support, custody, and visitation
- I will be moving to another state soon, with permission from my ex. The cost of living is higher in the new location. Will this entitle me to an increase in child support?
- My income has increased since the court ordered child support. Can I be penalized for not paying more because of my increased income?
- My ex-husband has been promoted several times in his job since our divorce and his income has increased dramatically. Can I ask for an increase in his support payments?
- Both my ex and I have moved from the state where we got divorced. He now makes more money and I need more support. Where do I file?
Contact me for your free initial telephone consultation
When you stand at the crossroads of your life facing a family situation, get experienced legal help from an attorney who listens and takes action. Call me at the Law Office of Eric L. Fredrickson, P.C. today at (888) 823-0811 or contact me online. Located in the greater North Houston area, my firm serves Conroe, Houston, Klein, Spring, Tomball, The Woodlands, Harris County, and Montgomery County.
Divorce and property division
Will I be entitled to part of the stock given to my husband as a gift during our marriage?
If the stock transferred to your husband as part of his compensation for working for a company, you may be entitled to a portion of the stock when dividing your property. If he received the stock as a gift, it may be his separate property. Gifts are considered separate, non-marital property and are generally not subject to division in a divorce.
If we divorce, will I receive credit for the down payment I made on our house?
In most states, an asset that a spouse owned prior to marriage is considered the separate property of that spouse, as long as it has not been combined with marital property to the point where you cannot tell what is separate and what is marital. Separate property is excluded from division in a divorce. The equity created in your home by your down payment would probably be your separate property and you would be entitled to at least the amount of the down payment and possibly the interest on your down payment based on the overall appreciation of the house.
How will my savings account be divided during our divorce proceedings?
In Texas, a person's separate property owned before marriage remains that person's property after a divorce, as long as it has not been combined with marital property. Any money put into the account during the marriage will most likely be considered marital property. If you can properly identify your funds and trace transactions through the account, they should remain separate property that will be returned to you at the time of a divorce. However, proving the money is yours can be very difficult where the accounts are subject to withdrawals, or where money is withdrawn to pay expenses.
Is my wife entitled to any of my accident settlement if we divorce?
In general, payment for pain and suffering resulting from an injury is the separate property of the injured person. However, the portion of the payment that makes up for lost earnings and expenses resulting from the accident may be considered a marital asset that may be divided between you and your spouse in a divorce. You should keep your personal injury settlement money separate from other money that might be considered marital property.
Can I argue that my wife earned some of the income from our small business?
Courts will review this type of situation on a case-by-case basis. Commonly, when a married couple has a small business that both help operate, but the couple's joint tax return shows that the wife earned no income as a homemaker, all of the income from the business will be attributed to the husband for support purposes.
Will I be responsible for my husband's school loans?
A court generally divides marital debt equitably, in the same way marital assets are divided. If the school loans were made during the marriage and you both benefited from them—such as using the loan money to buy food or pay rent—you might have to repay some of the loans.
How do I handle a potential IRS inquiry about tax returns filed by my ex-husband while we were still married?
Since July 1998, federal tax law has included innocent spouse relief. If a taxpayer files a joint tax return but then divorces, legally separates, or lives apart from his or her spouse for one year, he or she might be able to limit or even avoid liability if he or she can prove that the other spouse caused the tax problems. An innocent spouse must not have had any actual knowledge of the former spouse's tax violations.
Child custody, support, and visitation
I will be moving to another state soon, with permission from my ex. The cost of living is higher in the new location. Will this entitle me to an increase in child support?
Depending on the change in your income, you may have cause to modify the child support figure. If the court were to modify the amount of child support because of an increase in living expenses, it would most likely have to find that the modification is in the best interests of your children. Keep in mind, though, that any visitation expenses for your ex-husband increase due to travel, etc., and may offset any increase in living expenses on your part.
My income has increased since the court ordered child support. Can I be penalized for not paying more because of my increased income?
In most situations, child support increases are only retroactive to the date of the filing of a motion to modify child support. However, many courts and child support collection agencies require noncustodial parents to report their income on a regular basis to ensure smooth modification proceedings. If you have not been required to report your income, normally there is no obligation to pay anything more than what was ordered by the court. However, if your child support order does require income reporting, and you have not done so, you may have some problems.
My ex-husband has been promoted several times in his job since our divorce and his income has increased dramatically. Can I ask for an increase in his support payments?
Most states have a two-pronged test for determining whether child support should be increased. The parent requesting the increase must show that—
- The person paying support has an increased income
- The child has increased needs
There are states, however, that allow an increase based just on an increase in ability to pay. In many states, the person requesting an increase must show there has been a change in circumstances.
Both my ex and I have moved from the state where we got divorced. He now makes more money and I need more support. Where do I file?
Most likely, the Uniform Interstate Family Support Act (UIFSA) applies to your situation. This uniform law attempts to avoid multi-state support actions by favoring litigation in the state where the child is living. The state that originally issued the child support order has exclusive, continuing jurisdiction to modify the order unless both parents and the child no longer live in that state. In this circumstance, the state in which you and your child live should have jurisdiction to modify the support order. The state in which the original order was entered simply has jurisdiction to enforce its own order.
Since Texas has adopted the UIFSA, your modification action must take place in our state under its child support laws.
