Divorce is difficult, no matter what time of year you file. However, new changes in tax laws can add a new layer of complication for Louisiana couples looking to end their marriages in the new year. If a person is planning to move forward with this process at any point in 2019, it is beneficial to know what to expect and start preparing for it now.
On Jan. 1, new tax changes will go into effect, impacting the way that alimony will work. Alimony, or spousal support, are financial payments designed for the well-being of the lesser-earning spouse after the divorce is over. Currently, the paying spouse is able to deduct the amount from income taxes. The receiving spouse is taxed on the payments. After Dec. 31, that will not be the case.
Divorce in the new year will cost more because the paying spouse will no longer be able to deduct the payments. This will result in fewer tax savings, which could make the issue of alimony more contentious in future divorces. With these new changes, the recipient will not have to pay taxes on what he or she receives.
The tax changes may make it more likely that a couple will be unwilling to negotiate on the issue of alimony. It could be beneficial for both parties to learn more about what the changes could mean for them, helping both sides set realistic expectations for their divorce. The first step for anyone facing these issues in Louisiana is to have a case evaluation in order to consider the legal options available.
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