It feels like a strange thing to say but you may end up regretting not getting divorced sooner.
Starting January 1st there will be major changes to the alimony laws in the state of New Jersey. This will adversely effect the person paying out the alimony by not allowing them to consider the payments in their tax filings as a deduction.
Previous to the new year, a payment that was considered alimony was able to be deducted by the payor pre-tax. The person receiving it would file the payment as taxable income. This would result in significant savings.
This change applies to anything the court has deemed a 'judgement or settlement of divorce' post January 1st 2019. Meaning that if you are already divorced and paying alimony this change will not apply to you. It's also very important to note that this change in the law also applies to Divorces that are modified after the first of the year as well.
Going forward when the courts are determining alimony amounts, they'll now take into account post-tax income, when they formerly considered the pre-tax income. This will likely make the alimony total being paid out less.
Unfortunately the new year is here so those who are seeking a divorce will not be able to find the tax relief they would have had they pushed through the process earlier. Yet there are many ways you can still go through a divorce with as little monetary and emotional pain as possible. One of the easiest ways is to have an experienced attorney to assist you through the process. Without a good lawyer you may be paying even more for alimony than you ever would have. Make sure your quality of life isn't affected by the divorce process.
If you are seeking representation for a divorce or child custody case call today for a free consultation 800-709-1131 or fill out a contact form on our website for a no-cost consultation.We hope to hear from you today!