No two divorces are exactly the same. Numerous issues, such as child-related matters, property division or finances, may impact the ultimate outcome in a divorce. Recent news headlines suggest upcoming tax law changes will impact many divorces in Florida and throughout the nation.
It may be that the wealthiest of those who divorce will be the ones affected most by federal tax regulation changes in 2019. Prior to that time, people could deduct alimony payments on their tax returns. Anyone filing for divorce or seeking modification of an existing divorce court order before 2019 will reportedly still be able to claim alimony as a deduction on their tax forms.
Those of substantial affluence, especially when they earn a significantly higher income than their spouses, may take big hits financially if they file for divorce or seek modification of a court order in 2019 or beyond. Not every person who divorces and is currently earning income is ordered to pay alimony. Each case is decided under the court’s discretion. Also, while someone ordered to pay alimony must adhere to the terms of the decree, he or she may have valid need for requesting a change at some point.
Some say anyone contemplating filing for divorce who believes he or she will pay alimony will likely benefit from filing for divorce before 2018 ends. The Internal Revenue Service says at least 600,000 taxpayers currently claim alimony as deductions. Anyone in Florida with questions regarding the upcoming tax law changes may seek answers from an experienced family law attorney.