Ending a marriage seems like a daunting task. On top of that, the media and the silver screen make it look like an extremely emotional, unpleasant, contentious and life-altering event. For some, this is there reality; however, others are able to navigate the process with more ease. No matter the situation, many couples take measures to avoid such fates, especially when law changes could make matters worse for them.
For couples contemplating divorce this past year, many of them decided to pull the trigger before the close of 2018, as changes in laws impact how taxes are handled. A major change this year impact alimony. There are no longer tax breaks for those required to pay alimony starting this year.
While alimony is often a concern when going through the divorce process, there are other areas of concern. Wealthy or not, a prenuptial agreement could be part of the marriage. If a couple decides to divorce, this document should be executed properly. Additionally, if a spouse is unsure about the terms, it is important to challenge them.
Another factor that impacts the timing of divorce is having a business involved. Business valuation is not straightforward and can be complex. Tax implications are involved, causing some spouses to find it difficult to reach agreeable terms. Finally, it is important to consider other assets involved in the divorce process. For example, one should weigh the difference between receiving the family home or a spouse’s retirement plan. Tax deductions and implications can impact one’s decisions.
While there is no perfect time to divorce, for couples positive that dissolving their marriage is the best step for them, it is vital to understand if it is best to proceed right away or postpone it. Even if a couple cannot make things work, they could make the process run more smoothly by understanding that timing can make a huge difference.