Weighing the options re the changes to alimony in divorce | Lane & Lane, LLC
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Weighing the options re the changes to alimony in divorce

The new year is almost underway, and with it will come changes to the rules and regulations concerning how alimony is taxed. Couples in New Jersey who have made the decision to divorce, but were not able to finalize the process before the end of 2018 may be wondering how these changes might affect the outcome of their situation. Those who have concerns about what this will mean for their finances could benefit from speaking with an attorney for advice on any possible alternatives to alimony.

Under the new law, received alimony payments will not be considered taxable income, while alimony payments will no longer be eligible as a deductible. As such, there will be no difference between alimony payments and division of property payments as far as taxes go. However, there might be certain options to help prevent this from becoming a concern, such as negotiating payments over time for property division instead of pursuing alimony.

However, there may be certain risks with negotiating a similar arrangement. For instance, while alimony payments are not eligible for discharge through bankruptcy, this might not be the case for those pertaining to property division. In addition, failure to uphold the terms of a decision regarding property division may result in the garnishment of up to 25 percent of one's wages, while for alimony, the amount could go as high as 50 percent.

Those who are going through a divorce may face a variety of difficult choices, and changes to the rules concerning alimony may only complicate the process. For guidance in understanding the changes and how they could impact one's situation, a person could benefit from consulting with a family law attorney early on. An attorney can help a client in New Jersey better understand what to expect from the process and assist him or her in pursuing a favorable outcome during subsequent legal proceedings.

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