Are you currently embroiled in divorce settlement negotiations? You may want to hasten the process before December 31, due to tax changes on alimony payments.
If you live in New York, finding a good Nassau County divorce lawyer will be one of the key steps to strike a favorable deal before the Tax Cuts and Jobs Act’s impact becomes effective.
The tax reforms will require all alimony payments to the recipient as non-taxable, which means that the paying spouse will have to cover the fees. This will make it even harder for divorcing couples to agree on a deal, as the tax incentives to the payer often serve as an encouraging factor for them to sign a settlement, according to California-based divorce financial analyst Justin Reckers.
The worst-case scenario for those who are still considering a divorce would involve staying together, even if it means remaining in conflict. Ken Neumann, New York City’s Center for Mediation and Training director, attributed this unhappy situation to a couple’s finances. Some Americans will be unable to afford a divorce given the new treatment on alimony.
Most retired people think that when they intend to file a divorce, it no longer requires them to pay spousal support. However, alimony payments may still be applicable that would represent as an unexpected expense.
Pew Research Center said that there is a growing trend of divorce among people beyond 65 years old since 1990. For this reason, you need to reconsider how alimony payments may affect your retirement fund. Take note that a litigate divorce may cost from approximately $15,000 to as much as $50,000, according to AOL Finance.
The most cost-efficient way to avoid paying alimony would have to be repairing broken ties with your spouse. Otherwise, you need to act soon before 2019 if you want to prevent a tough breakup.