Texas is a community property state, which means that any property or debt acquired during the marriage is generally considered community property, and both spouses share an equal interest in it. However, it’s important to note that not all debts are divided equally during divorce. Instead, Texas courts aim for a just and right division
The IRS released new guidelines this month designed to provide relief to more innocent spouses seeking relief from tax liability.
Continue Reading More Innocent Spouses Qualify For Relief Under IRS Guidelines
A debt incurred by a spouse during the marriage is presumed to be a community property debt. A debt incurred before the marriage is presumed to be separate property debt. If a debt is incurred during the marriage, but the creditor agreed to look solely to the separate property of the spouse for satisfaction of the debt, then the debt may be a separate property debt. Characterization of the debt as in the nature of community property does not determine the question of liability.
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Divorce can be a trying time on your credit as well as your finances and emotions. A vindictive or spendthrift ex-spouse can incur debt on your joint accounts and destroy your credit rating during hte divorce process. I fyou are not able to pay a joint account in full, inquire as to whether you can maintain a balance on the account after it is closed to prevent the situation from gettng worse.
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On July 8, 2009, the Tyler Court of Appeals affirmed a judgment for monetary damages in favor of one spouse against the other. In Colvin v. Colvin, the husband sued his wife for personal injury damages caused by his wife in an automobile collision. Under the facts presented, wife was the driver of a car and the husband was the passenger. Wife and a third party were in a collision, third party sued wife, and then husband intervened in the lawsuit and sued third party and wife (husband and wife were married at the time and are still so).
Continue Reading ‘Til death do us part, or until I sue you.
A new case out of the Tyler Court of Appeals hold that a contempt order ordering imprisonment for failure to make car payments required by a divorce decree is void as imprisonment for debt. Also, the court holds that a contempt order may not be used to make substantive changes to divorce decree.
Continue Reading No Debtors Prison for Failing to Make Car Payment