Sunday, June 2, 2013

Significant Changes Relating to Alimony Passed by the Texas Legislature in 2011

In 2011, the Texas state legislature agreed to specific changes in Texas Family Law that affected
the amount and duration limits of an alimony (spousal maintenance) award in a divorce settlement.
While controversial in some circles, these changes were indeed significant and are--for better or
worse--important considerations for any divorce mediation or litigation process. 

The most notable changes were the duration of the time in which a spouse could receive alimony and
the amount of alimony that could be received. Additionally, the bill clarified points that had
been sources of confusion in the past: primarily, the definition of a spouse's gross income and
the circumstances in which a spousal maintenance order was justified.

The legislation that the bill replaced set the maximum duration of alimony to 3 years, even if the
couple had been married for 20 years or more. There were, of course, situations in which this
period could be extended (such as the recipient's physical or mental disability, or the disability
of a child of whom the recipient was primary custodian). However, for most cases, this 3-year
limit was the cutoff for any time of alimony payment. 

With the new law passed in 2011, the court now considers the duration of marriage as a factor in
determining the duration of alimony payments received. 

- For spouses who have not been married at least 10 years, no alimony can be received by either
spouse (except in specific circumstances). 

- For marriages that continued for 10 to 20 years, a maximum duration of 5 years could be awarded
for alimony. 

- For marriages that continued for 20 to 30 years, a maximum duration of 7 years could be awarded
for alimony. 

- Finally, for marriages that continued for 30 years or more, a maximum duration of 10 years could
be awarded for alimony. 

While the maximum allowable amounts for alimony was doubled in the new legislation, gross income
was redefined in much the same was as it is defined for child support payments. According to the
new definition, gross income is:

(A) 100 percent of all wage and salary income and other compensation for personal services
(including commissions, overtime pay, tips, and bonuses);

(B) interest, dividends, and royalty income;

(C) self-employment income;

(D) net rental income (defined as rent after deducting operating expenses and mortgage payments,
but not including noncash items such as depreciation); and

(E) all other income actually being received, including severance pay, retirement benefits,
pensions, trust income, annuities, capital gains, unemployment benefits, interest income from
notes regardless of the source, gifts and prizes, maintenance, and alimony.
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If you have any questions about divorce mediation or litigation process regarding alimony, divorce
& family law, please call John Powell III at 281-870-2053 and schedule a free 30-minute
consultation. John has has represented persons in literally hundreds of divorces, child custody
and support modifications to resolve their conflicts amicably with less expense, and most
importantly, in less time. Visit http://www.powellfirm.com

Posted by Randy Freir, Tallahassee Bankruptcy Attorney