When a couple divorces in Texas, a court order defining alimony requirements may take effect immediately. Alimony provides financial support for individuals who did not work outside of the home during the marriage, or whose lack of experience and job skills compromise their ability to find employment.
While there are strict requirements for honoring alimony agreements, modifications are possible depending on a couple’s circumstances. One development that may call for modification of an alimony agreement is retirement.
Income fluctuations require modification
According to the National Law Review, changes to a person’s monetary earnings are a common reason for alimony modification. When one of the individuals chooses to enter retirement, he or she may lack the resources necessary to continue paying alimony. In some cases, people may request a deduction of how much they must pay. In other scenarios, an inability to pay anything at all may prevent people from making payments on time.
Before people foresee their retirement affecting their ability to pay alimony in full, they should begin negotiating an agreement modification. With timely communication informing the courts of changes to income, people can prevent getting themselves into legal trouble for ignoring their alimony obligations altogether.
Paying alimony with retirement benefits
CNBC.com suggests that some people may consider making alimony payments using their retirement benefits. If people choose to go this route, it is imperative that they understand the repercussions and contingencies of withdrawing and/or receiving money from retirement accounts. People who do not understand the rules and regulations regarding the use of their benefits may end up creating more stress and financial strain. People should also be aware that they need to be at least 59-and-a-half years old to receive alimony in the form of retirement benefits.
