Divorce: Taking the coming tax changes into consideration | Lane & Lane, LLC
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Divorce: Taking the coming tax changes into consideration

For many individuals in New Jersey and across the nation, maintaining financial stability is an essential part of life. Those who make the decision to divorce may have concerns about how a similar life event might disrupt their finances, and they may wish to take steps to safeguard their futures in the process. Although a similar decision generally requires deliberation, a person may find it advisable to gain an understanding of the coming tax changes and how they might influence the process before deciding on a path.

One of the changes that will take effect after the end of 2018 pertains to alimony. Under the new law, a person will no longer be able to file spousal support as a deductible or taxable income. While this might seem like a positive change for those who are receiving alimony, experts suggest that this change could alter how these payments are calculated. In addition to possibly lowering the amounts of alimony payments, the change could also have an impact on a person's eligibility to make IRA contributions.

These changes could also have an impact on other areas, such as tax benefits concerning the family home. For parents, the amount they will receive for claiming the kids on their taxes may also decrease. For those who have existing prenuptial or post-nuptial agreements, it might be necessary to review these agreements and address any changes that are made necessary under the new law.

While rushing to make such a major decision may never be advisable, the coming changes could influence a person's decisions substantially. Prior to deciding on a path, a person in New Jersey could benefit from consulting with an experienced attorney for guidance in covering every aspect of divorce. An attorney can address all a client's concerns and provide advice on making informed decisions regarding his or her future.

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