The Texas Family Code characterizes and presumes that any income or debt that occurs during the marriage is community property. That means that any tax return income is under the jurisdiction of the court to divide. The court can also take into consideration any money owed to a tax entity as debt owed to both martial partners.
When tax season is coming, one marital partner may believe that they are entitled to the entire tax refund. The courts do not usually see it that way. Sometimes, the court will order that both marital partners in Texas divide the refund in a fair way. The court may impose a temporary restraining order to prevent one of the parties from receiving the entire refund and how they spend it while a divorce is pending. The court may look at factors such as disparity of income, the conduct of the parties, and the debts and obligations of each party such as pending bills and the child support obligation of the children.
In the case of parties that have been separated for an extended period of time, the court may consider the division of the respective tax refunds of the martial partners as to what has occurred during the separation period and how has been taking care of the responsibilities of the community estate, the support of the children, and who has contributed to the tax refund.
Tax Refunds & Divorce
It is important that one knows that time is of the essence during tax season to ensure a timely filing with the court to obtain orders as to the tax refund as one of the marital partners may have plans to spend all of it while the divorce is pending or during the separation period. There are legal options one must consider, and the courts will ultimately look at what is fair and what is in the best interest of the children. If a person spends the tax refund and other community income before a divorce or while the divorce is pending on wasteful things, there are legal options to claim reimbursement of those funds with clear and convincing evidence of this kind of conduct.
For more information, call The Barrera Law Firm for a free consultation with an attorney on how to proceed at 956-428-2822.
