Leave That Marriage in 2018
There’s something about the New Year that makes people want to start fresh and leave all bad situations behind. Going into 2019 with a positive attitude is exactly what you need to start your year off right. But if your divorce wasn’t finalized before January 1, 2019, changes from the Tax Cuts and Jobs Act will alter your future.
How the New Law Works
Before, alimony was a tax-deductible payment for the payor, and taxable income for the payee. Since women are more often the recipients of alimony than men, many have been celebrating the fact they will no longer have to pay taxes on alimony payments. However, our Montco family law attorneys know that tax burdens have been built into the current spousal support system, and used as leverage in determining how much alimony the dependent spouse will receive. Though you no longer have to pay taxes on alimony you receive, you’re likely to get a whole lot less alimony altogether. In addition, having multiple children will no longer count for several tax credits and deductions on your income tax.
Pennsylvania family courts are in the process of recalculating support guidelines by taking out the tax obligations. It’s unclear whether a modification of a support or alimony order set in place before January 1, 2019, will change with these new standards. It is also uncertain how prenuptial and postnuptial agreements made prior to the deadline will be handled in the courts.
But all experts agree: in light of this complicated situation, you should seek professional help.
How to Deal with the New Law
The bright side is this law isn’t set in stone. It expires in 2026, and while that may be a long time, it is something to think about if you will be paying or receiving alimony long-term. We know this change could cause a financial trouble for some people, and we want to avoid that. Don’t agree to an amount that will cause you more issues down the road. If you could not get your divorce finalized before the year was out, sit down with a Pennsylvania property division lawyer and decide what is ultimately right for you.
If you have an team on your side, like the Law Offices of Sheryl R. Rentz, P.C., we can help you receive an outcome that won’t lead to financial ruin. We have handled divorces in the Main Line area for over 25 years. Talk to our Montco alimony attorneys in a free consultation today at (610) 645-0100.
It’s time for you to gain your freedom and look forward to the new life and opportunities waiting for you in 2019. Our law firm wishes you and your family a very prosperous and joyful New Year.