While the number of marriages dissolutions is declining, the rate is actually increasing for older people in Georgia. With the end of 2018 quickly approaching, aspects of the new tax law will soon go into effect. This can have a significant impact on anyone deciding to divorce in 2019 and beyond.
Since alimony will no longer be tax deductible after January 1, assets such as retirement accounts will take on an increased significance in divorce negotiations. Older couples don’t have as many working years left, so assets such as retirement accounts and real estate become key to negotiating a final settlement. When considering the value of retirement and other investment accounts, taxes should be taken into consideration.
If a person has a choice of receiving a benefit of $1.5 million in an investment fund or $1 million in cash, it might be to one’s benefit to review the tax implications of both accounts. If capital gains taxes are imbedded in the $1.5 million, that could reduce it’s value. The $1 million in cash might actually be worth more.
Divorce is seldom pleasant to contemplate, but a person in Georgia who is considering a divorce might benefit from seeking the counsel of an experienced family law attorney. This is especially true as the parts of the tax law that affect divorce go into effect on January 1, 2019. A knowledgeable attorney will be familiar with the new law and can review a client’s circumstances. A lawyer may be able to advise a client on options available to achieve a fair settlement.