Hakan Oksuzler worked for Bank of America and had been married to his wife, Lauren, since 2010. As part of his job, Hakan received an annual bonus that was linked to both his performance and the company’s. The bonus typically included both cash and stock, and was awarded around February 15 of the following year. 

Sometime in November 2019, Hakan’s manager recommended a bonus totaling $140,000 in cash and equity. This amount was approved by the bank’s board of directors in January 2020 and presented to Hakan the next month. On December 9, 2019, the divorce between Hakan and Lauren Oksuzler was finalized. However, a dispute still existed about the disposition of the 2019 bonus. Both the trial and appellate courts ruled that because the award was made after the marriage, it should be classified as separate property. 

In a case captioned In re J.Y.O., the Supreme Court of Texas reversed that holding. The justices stated that because the discretionary bonus was earned by Hakan for work performed during the marriage, it is considered community property. According to the decision, salaries and bonuses are dated according to when the right to the compensation arises, not when the payment is actually made. To support this principle, the Court noted that if the date of payment were used, divorcing spouses could game the system during a property division dispute by deferring compensation until the marriage was legally dissolved. 

Before you start the divorce process, you should speak with a knowledgeable Texas attorney regarding the disposition of community property and any potential conflicts about whether a particular item is a separate asset.  

Grob & Associates Law Firm PC in Rockwall and Wylie provides strong advocacy for North Texas residents who are going through a divorce. Please call 972-777-5701 or contact us online to schedule an appointment. We offer a free consultation for family law matters.    

Under Senate Bill (SB) 23 and Senate Joint Resolution (SJR) 85, the school tax homestead exemption for Texans who are disabled or at least 65 years of age has been raised from $10,000 to $60,000. This means that this amount would not be counted when a property is assessed. Moreover, the standard homestead exemption was hiked from $100,000 to $140,000, giving seniors the ability to exclude up to $200,000. For homes valued at less than that amount, no school tax would be applied. 

Each situation is unique, but some older homeowners will see considerable reduction in property tax liabilities, effectively cushioning them from escalating home values. School district taxes are also frozen the year someone qualifies for the exemption due to age or disability. By lowering property taxes, the law allows elderly and disabled homeowners to retain more of their income. This financial relief might allow them to devote additional assets to estate planning vehicles while still having what they need to cover daily living expenses and healthcare costs. 

Depending on the particular circumstances, there could be a stronger incentive for older family members to retain their primary residences because of the reduced tax burden. Accordingly, they might make passing this property to children or grandchildren part of their estate planning strategy. 

Medicaid eligibility and long-term care planning is also a key concern for older individuals and their families. Strategic use of the homestead exemption and other options, such as a Medicaid trust, can help people fund nursing home expenses without worrying about severe financial consequences for themselves or their loved ones. 

As these and other legal developments unfold, it is important to consult with a knowledgeable attorney to ensure that you’re getting the most possible out of your estate plan under current laws. At Grob & Associates Law Firm PC, we help Texans leverage their opportunities by preparing a full range of estate planning documents for them. Please call 972-777-5701 or contact us online to schedule an appointment at one of our offices in Rockwall or Wylie.