The law as it relates to family law doesn’t change very often. However, when there are fluctuations, the consequences can be staggering. This is why individuals who are considering divorce need to keep up-to-date on any pending legal changes so that they can pick the time that is right for them to end their marriage.
One change about to come into effect could make divorce much more expensive. This change is related to a somewhat recently passed tax law that has a profound impact on how child support and alimony are handled. With regard to child support, the new law increases the standard deduction values for those who file as Head of Household. Since the tax law only allows one parent to claim Head of Household status when there is a child involved, this can be a sticking point in divorce negotiations, as there may be significant financial resources at stake, including the Child Tax Credit. On top of that, the law does not allow for parents to trade off who will claim a child as an exemption. This could be another issue during divorce.
With regard to alimony, starting in January payments will no longer be tax deductible. Those who receive alimony will no longer have to pay taxes on such funds upon receipt. This could make it more challenging to negotiate alimony, as it will be much more costly to the paying spouse.
These provisions can have a serious impact on divorce negotiations and proceedings. To get a better handle on them and understand how they may affect your unique set of circumstances, it may be wise to sit down with an experienced family law attorney to figure out a skillful course of action that protects your best interests.