Big Change in Store for Alimony Tax Breaks
Going through a divorce can be an extremely grueling process that pits former lovers against each other in the court of law, and with new rules going into effect at the beginning of next year that process may become even more stressful. Starting in 2019 people will no longer be able to deduct alimony payments made to their ex-spouse on their tax return and the person who was receiving those payments will no longer have to pay taxes on that income. This is a big change to the laws that are currently in place, one that has many New Jersey attorneys telling their clients that if they have any thoughts about getting a divorce the time to do so is now.
Tax Cuts and Jobs Act
Known as the “Tax Cuts and Jobs Act” these new rules will cover all divorces that occur after December 31, 2018. This is an important date to know not just for those who believe these new laws will affect their alimony negotiations if they get divorced this year but also for those people who live in states that require a waiting period before their divorced can be officially finalized. Basically what this means is that if you are debating filing for divorce today you will want to do so sooner rather than later so you can enjoy the tax breaks that alimony payments have now rather than waiting to file for divorce and then missing your window of receiving these benefits. Regardless of how long your state requires you to wait before your divorce is official however the most important thing to do now is to get the process started while you still can.
Alimony payments were created in order to help a former spouse try and maintain the standard of living that they were used to before they were divorced, yet the rules on how these payments are given as well as the amounts can vary from state to state. It is because of these variables that it is important to have a knowledgeable divorce attorney to help guide you through the process as the ever changing rules are always something best handled and explained to you by a professional.
Contact a Qualified New Jersey Divorce Attorney Today
Divorce can be tough for everyone which is why you need an attorney with over 30 years of experience fighting for her clients rights like Lois Garber Schwartz. If you or a loved one are thinking about getting a divorce contact the law office of Lois Garber Schwartz today to schedule your initial consultation.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.
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