New tax laws will take affect at the beginning of 2019, and they will have a significant impact on certain family law issues. The changes to the laws could affect your divorce. In fact, if you are currently in the process now, there might be reason for you to work to finalize the divorce by the end of the year.
Under current divorce laws, the individual paying spousal support is able to deduct the amount he or she pays for tax purposes. However, under the new laws, that will no longer be an option. Both legal and financial experts suggest attempting to resolve ongoing divorces before the new laws complicate divorce proceedings.
What do the new laws mean for you?
If you are already going through a divorce, the impending changes in tax laws could give you and your soon-to-be ex-spouse incentive to reach a beneficial conclusion sooner rather than later.
If you are not able to finalize the process before the end of the year, it can be helpful to understand these laws. Consider the following:
- The changes will be especially important for people who own significant assets or earn a high income.
- The changes could negatively impact divorcing couples in which one spouse earns significantly more money than the other.
- The changes could impact more women than men, as women are more likely to receive alimony payments.
Whether you think you may have to make alimony payments or you believe you have a rightful claim to this type of financial support, it would be wise to thoughtfully consider all of your options.
The post-divorce future you deserve
If you are considering divorce, it is beneficial to make decisions based on what is truly best for you.