If you are considering divorce, it is important to also consider the timing involved with ending your marriage. This article will discuss four of the important things that you should consider when deciding whether to divorce this year. In these situations, the assistance of a seasoned attorney can help you to determine how to best navigate matters.
Alimony is subject to change in a significant way in 2019. Under the terms of current laws, alimony is deductible in the taxes of the paying spouse, while taxes must be paid by the spouse who receives the compensation. The rationale behind this approach was that the recipient often paid taxes at a lower rate than the person who paid alimony, which frequently resulted in fewer taxes being placed on the amount. Alimony, however, will no longer be deductible after 2019 by either the payor or considered a tax to the recipient. As a result of this change in alimony taxes, many couples might feel that it is a better idea to divorce in 2018 instead of waiting until 2019 or beyond.
Changes to Family Home Tax Benefits
New tax laws have lowered the amount of property taxes that can be deducted as well as the amount of mortgage that qualifies for interest deduction. Under new divorce laws, it is more difficult to own a home. Decisions that are connected to the sale of your marital home might play into the timing of divorce.
Children as Tax Deductions Have Changed
New changes to the tax code mean that parents are not able to receive more tax deductions based on the number of children that they have. Couples, however, still must determine which parent will claim the children as a tax credit. If you have young children, however, you still might be able to claim an increased benefit later on because tax exemptions are scheduled to return to the old standard after 2026.
Prenuptial Agreements are Endangered
It is vital for divorcing couples to determine whether any recent changes to the law will impact their prenuptial agreements. One of the legal changes that had a substantial influence on the deductible nature of alimony are laws that changed whether alimony was tax deductible. Fortunately, a seasoned attorney can review your prenuptial agreement to determine whether it was impacted by these new laws.
Other Timing Issues Might Arise
Some of the other issues that might influence exactly when you decide to get divorced include what a former spouse thinks, whether the holidays are immediately approaching, issues surrounding health insurance, and approaching pregnancies.
Speak with a Skilled Family Law Attorney Today
At Vayman & Teitelbaum P.C., we have helped a number of clients navigate the numerous complicated issues involved with divorces, including timing and tax matters. Do not hesitate to contact our law office today to schedule an initial free case evaluation.