Divorce may not be one of things you think about when you think “big changes ahead” (after all, divorce law doesn’t exactly change all that often.) But this year is going to see some significant changes to how divorce is handled, and how it could affect you. Curious about what lies ahead? Thinking about divorce and what it’s going to look like in your case? Here are some things you need to keep in mind as we enter 2019:
The tax laws are changing alimony completely!
The way alimony is taxed will be totally different starting this year. There are no longer any tax deductions for the person paying alimony to a former spouse. The payer can no longer deduct it on their taxes the way you could before. On the flip side, however, the person receiving the alimony payments does not have to claim that money as income. So they don’t have to pay federal taxes on any alimony they recieve.
This can even affect people who were divorced before this year!
Even couples who got divorced before the laws changed could be affected. Although anyone divorced before the law changed isn’t subject to the changes, that might not last if they modify their alimony agreements in any way in the future. Even prenups can be affected, if they spelled out specific alimony agreements when they were written up, but those no longer apply under the new tax laws.
Children no longer mean great tax deductions!
In 2017, the tax laws changed by eliminating the $4,050 exemption for each dependent (this lasts through 2025. On the flip side though, the child tax credit has doubled from $1,000 to $2,000. And don’t forget that the standard deduction has almost doubled as a result of the 2017 tax law. So whether you’re single, or you have kids, your tax deductions in 2019 and beyond will be significantly larger.
As tech evolves it will affect divorce even more!
As little as ten years ago, people didn’t give a thought to how their phone’s GPS history may affect their divorce proceedings. Or how their text history could impact their child custody agreement. But with the ever-evolving technology available to us these days, tech is playing a far greater role in divorce. So keep in mind, as we move into 2019, that things like phone pictures, social media, and electronic communications can change the outcome of your divorce.
Having the right attorney will make all the difference!
Changes to the law can make an already confusing process even more overwhelming. So if you or a loved one are considering divorce and are concerned about how the new laws and changes will affect you, call The Kronzek Firm at 866 766 5245. Hiring a skilled family law attorney to advocate on your behalf, and help you come to a fair arrangement, can give you peace of mind and ensure that your divorce goes off without any unnecessary problems.