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How tax reform will affect future divorces

On Behalf of | Aug 28, 2018 | Divorce |

Georgia couples planning a divorce have many issues to consider. They may need to determine who will get custody of the children, how the assets will be divided and whether alimony will be paid. For most couples, speaking with an attorney or even a judge is a necessary part of divorce. Because emotions can be flying high during this time, it may not always be possible for couples to come to a reasonable agreement on how assets will be divided.

In addition, couples divorcing after 2018 will have a new consideration. When choosing to divorce, future exes will deal with the Tax Cuts and Jobs Act. This law states that alimony will not be tax deductible any more. Furthermore, the recipient won’t have to pay taxes on the funds received. Alimony is designed to protect a former spouse from unexpected expenses and the financial trauma that often accompanies divorce. However, it should be noted that the tax changes only affect new divorces starting in 2019.

When a couple is ready to begin the separation process, it’s vital that they consider divorce planning as an important step in the process. Properly planning will help prevent financial troubles and struggles during and after the divorce process. Furthermore, divorce planning will help ensure that the couple is able to separate as easily and seamlessly as possible.

Regardless of where a couple is in the divorce process, the right attorney can be an incredibly valuable asset. Legal counsel could offer assistance and guidance in the divorce planning process. An attorney can explain the current tax laws while simultaneously ensuring the couple has the best advice possible as they move forward in the process.