Commonly Asked Questions
What is the difference between maintenance and alimony?
In Texas, "maintenance" and "alimony" are often used to refer to financial support paid from one spouse to the other after a divorce. In general family law discussions, many people treat the terms as interchangeable, although the Texas Family Code uses "maintenance" when describing court-ordered post-divorce support.
Can a prenuptial agreement affect spousal maintenance?
Yes, a prenuptial agreement can impact spousal maintenance in Texas. If the agreement contains provisions regarding alimony or spousal support, it may influence the court's decision on the issue.
Is spousal maintenance taxable in Houston, TX?
Under current federal tax law for divorces finalized after 2018, spousal maintenance payments are generally not deductible for the payor and are not counted as taxable income for the recipient. Because tax rules can change, it is important to consider current tax implications and consult both legal and tax professionals when negotiating spousal maintenance.
What happens if the paying spouse fails to make maintenance payments?
If the paying spouse fails to make maintenance payments, the recipient can seek enforcement through the court. Legal remedies may include wage garnishment, property liens, or other means of collecting the unpaid maintenance.
Understanding the Tax Implications of Alimony in Texas
When it comes to alimony, it's important to understand the tax implications, especially in the state of Texas. Alimony, also known as spousal maintenance, can have tax consequences for both the payer and the recipient. Our experienced alimony lawyers in Houston can provide guidance on the tax implications of alimony and help you navigate applicable tax laws.
Key points to consider regarding alimony and taxes in Texas:
- Tax treatment of alimony payments
- Reporting requirements for alimony recipients
- Impact of alimony on tax brackets
- Tax deductibility of alimony payments
- Tax consequences of modifications to alimony agreements
What Is Spousal Maintenance in Texas?
Unbeknownst to many, spousal maintenance and alimony are actually two different forms of post-divorce support to be paid by one ex-spouse to the other in Texas.
Spousal maintenance is defined by the Texas Family Code as an award of periodic payments from the future income of one spouse for the support of the other spouse in a divorce.
Maintenance can be ordered by a court even if one party disagrees with the need for it. For example, a judge could order spousal maintenance such that a party must provide their ex with a certain amount of money per month, even if the person responsible for paying disagrees with the order. However, to engage in a contractual alimony arrangement in Texas, both sides must agree on the need for alimony and enter into an alimony agreement for the court to approve.
Who Qualifies for Spousal Maintenance in Texas?
A Texas court may order spousal maintenance only if the recipient spouse, upon divorce, will lack sufficient property, i.e., assets, to fulfill their basic needs, which the Texas Family Code describes as the spouse’s “minimum reasonable needs,” and at least one of the circumstances below exists:
- The paying spouse has a conviction for family violence against the other spouse or their child within two years of filing for divorce or while the divorce was pending.
- The requesting spouse can't earn sufficient income to support themselves because of an incapacitating physical or mental disability.
- The couple's marriage lasted at least ten years, and the dependent spouse does not have assets nor the ability to earn an income that meets their basic (minimum reasonable) needs.
- The spouse requesting alimony is responsible for a child, including an adult child, of the marriage who requires significant care or supervision due to a physical or mental disability that prevents the parent from earning a living.
How Is Alimony Decided in Texas?
Below are the factors considered when determining the amount of alimony in TX:
- The spouses’ ability to provide for their individual needs;
- Prior education and any employment skills of each spouse, and the amount of time needed to seek education or training by the supported spouse to become financially independent in the future;
- The length of the marriage;
- Age, previous employment history, earning capabilities, and physical and emotional state of the person pursuing spousal support;
- The impact of a child support order on the paying spouse’s ability to pay spousal support;
- Any assets either spouse brought into the marriage;
- Marital misconduct, such as adultery or abuse, by either person throughout the time they were married;
- Any individual spouse's contributions as a homemaker; and
- If either person contributed to their spouse's training, education, or increased earning potential during the marriage.
Variables that Affect the Award of Maintenance
The following variables are just some of those factors and the reasoning for their impact:
- Disability: A spouse seeking maintenance who also has a disability may obtain an award for alimony for the duration of the disability.
- The non-breadwinning spouse's ability to find work: A judge will typically consider the spouse's employability in determining whether the court should order maintenance.
- Financial abuse or control: If either spouse has committed financial abuse by wasting, destroying, or fraudulently concealing the couple's assets, the judge must weigh whether or not such circumstances warrant either the denial or the imposition of spousal maintenance to compensate for such treatment and limitations, as well as weigh those factors in determining the amount and duration of the maintenance to be awarded.
- Premarital agreements: If a valid prenuptial agreement exists and addresses alimony, a judge will consider the deal when determining and ordering the alimony.
Although the above is not an exhaustive list of concerns and considerations a judge will weigh when awarding alimony, it provides examples of the variance in issues analyzed by a judge. A judge will use the items on the list (and potentially more) to grant or deny you spousal support.
Temporary Alimony in TX
Temporary alimony is spousal support that will provide the funds needed during the divorce proceedings until a more permanent agreement is reached. Filing for temporary alimony can be the answer you need to continue caring for both yourself and your family.
You should consider filing for temporary alimony if any of the following apply:
- You have given up a portion or all of your assets for the marriage
- You need spousal support to make ends meet
- The divorce proceedings are lengthy
How Long Does Maintenance Last in TX?
Most maintenance does not last indefinitely. However, some special circumstances favor long-term payments. For example, if one spouse gained custody of a child with a disability, they might require lifetime maintenance. This is also the case when maintenance is awarded to a spouse who is disabled to the point of incapacity. Lifetime maintenance is the informal name for maintenance ordered because of a specific condition.
Texas law places the following time limits on post-divorce maintenance:
- Five years if the couple's marriage lasted 10 to 20 years;
- Seven years if both parties were married 20 to 30 years;
- Ten years if the marriage lasted at least 30 years.
The amount of maintenance to be paid each month under Texas law is limited to the lesser of $5,000 or 20% of the paying ex-spouse’s gross monthly income. But the most important limit on the payment of maintenance in Texas is the statutory presumption that maintenance is not warranted for an ex-spouse who is not disabled or caring for a disabled child, unless that spouse has diligently pursued obtaining employment and developing skills to meet his or her minimum reasonable needs during separation and while the divorce case is pending.
Can Spousal Maintenance Be Modified?
Alimony agreements are legally binding documents that must be honored by both partners for their entire duration. However, court-ordered maintenance in Texas can be modified if the agreement becomes unrealistic, considering current financial capabilities. Texas law limits maintenance payments to 20% of the paying individual's average gross monthly income or $5,000, whichever is lower. The amount paid each month depends on factors like the payor's salary. If the person paying alimony experiences a decrease in salary or other financial change, they can request a modification. As situations change, factors may be considered for decreasing maintenance, but Texas law does not allow for increases, regardless of the severity of the need.
How to Modify Maintenance in Houston, TX
To modify maintenance, you must file a new petition or lawsuit and have it served on the other party. You must be prepared to provide sufficient evidence to prove good reason to change the terms. Texas law requires the petitioner—the requesting party—to prove a material and substantial change in circumstances.
Is Alimony Tax Deductible in Texas?
Alimony was once deductible under the US Tax code, but the alimony tax deduction was repealed by federal legislation. As a result, contractual alimony agreements are not used as often in divorce as they were in the past. Neither alimony nor spousal maintenance are deductible.
What Happens to Alimony if One of Us Remarries?
If you're the person paying alimony, you're required to continue paying despite getting involved in a new relationship or marriage. However, your obligations to make alimony payments cease if your former spouse remarries.
It's not a legal requirement to seek a modification in your court-ordered maintenance when your ex remarries, because at that point, your obligation to pay maintenance terminated—which is nice, if you know about it. If you continued to pay alimony because you were unaware that your ex remarried, you could file suit to get your overpayment back.
In situations where the recipient enters a new live-in romantic relationship, alimony payments may terminate if the court so finds. Even if your former partner doesn't get remarried but simply cohabitates with a romantic partner, a court could order an end to your maintenance payments.
Consult Our Alimony Attorney in Houston, TX
At Diggs & Sadler, our Houston spousal maintenance and alimony lawyers can help you pursue an equitable outcome in your case.
Schedule a consultation with our Houston spousal maintenance attorney! Contact us online or via phone at (713) 766-5355.