Many things could impact a person’s decision on when the right time to get divorced would be. For example, there are a range of considerations related to the unique circumstances of one’s family that can play a role on this front. Also, recent law changes can be important to factor in when it comes to decisions related to divorce timing.
Take, for example, the recent changes in tax law here in the United States. There are many ways taxes and divorce intersect. Here are some of the divorce-related areas the new tax law will have impacts on in the not-so-far-off future:
- Business valuation: What value a business is found to have can have many impacts within the financial issues in a divorce. Among the things that can have impacts on a business’ value is its tax liability. Under the new tax law, certain pass-through business entities could experience changes in the tax exposure connected to them that would increase their value. It might take some time for the exact magnitude of this value change to become clear.
- The alimony deduction: Under previous tax law, alimony was deductible. However, as of next year, this will be changing. Specifically, under the new tax law, alimony paid in connection to any agreement formed or updated after the last day of 2018 will not be deductible.
- Alimony’s taxable status: The start of next year will also see a change in alimony’s taxable status. Specifically, alimony income individuals receive will, generally, no longer be subject to taxes.
These upcoming changes are among the things individuals who are planning on getting divorced may want to consider these days when deciding what divorce timing would be best. Skilled family law attorneys can give individuals guidance on how things such as divorce timing and new laws (such as new tax laws) could impact their divorce.