I’ve been coming across many articles lately revolving around the rush of couples to finalize their divorces before the end of the year. As is normal around December, many couples want to finalize their single status before the end of the year so that they can file single on their taxes for the year. But it is also especially pronounced due to the new tax rules regarding alimony appearing in 2019.
Per the article, before alimony payments have been tax deductible to the payor spouse and includable for the payee spouse. Under the new tax law, for divorces finalized after Jan. 1, 2019, people who receive alimony won’t have to pay taxes and the payor will not be allowed to deduct it.
This is resulting in couples who are in the midst of a contentious divorce to at least work on that issue for the time being to see if it can be finalized before the end of the year.
The deduction for high earners means hundreds of dollars to thousands over the course of the payment responsibility. That is a significant bargaining chip on the table. Now that the bargaining chip is off the table, couples are finding that offers are reflective of that with often times lower offers.
If there are any legal questions you may have, I encourage you to, please contact my San Jose Divorce Lawyer office. My San Jose Family Lawyer offices assists many people who are going through family law related issues. We have many Affordable San Jose Divorce Lawyer solutions for many different budgets. San Jose unbundled limited scope family lawyer.
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