When the parties to a Texas divorce agree on a property division, they may agree that certain obligations or conditions must be met. If a party fails to meet their obligations as agreed to and set forth in the divorce decree, they may not be entitled to the property they were expecting. In a recent case, a husband challenged a court order requiring him to reimburse the wife for certain tax liabilities after she failed to provide him the documentation required to calculate the amount he owed in accordance with the decree.
Wife Fails to Comply with Requirements of Divorce Decree
The parties’ mediated settlement agreement was incorporated into their divorce decree. The decree required the wife to withdraw funds from the husband’s pension plan. After paying certain debts, her attorney was to distribute 30% of the remainder to the wife and 70% to the husband. The decree required the husband to reimburse the wife 70% of her income tax liability for those funds. The decree ordered the wife have two draft income tax returns prepared, one showing the pension plan funds as income and the other not including the funds, to allow the husband to calculate that reimbursement. She was to provide the husband with the draft returns by June 1 of the year after the year the funds were liquidated.
The wife hired a tax preparation company. The first draft return was a joint return with her new husband and included his wages, her wages, her social security disability income, and the liquidated pension plan funds. The second draft return indicated it was a joint return, but only included her wages. She sent the drafts to the husband before the deadline. He informed her he needed a draft return that included only her wages and the liquidated pension plan funds. The wife went back to the tax preparer multiple times, but said they kept getting it wrong.