Divorce proceedings are never pleasant, but some divorces are worse than others. In some cases, it may be appropriate for one spouse to seek an order of protection, (a court order that restricts one person’s behavior in a certain way), usually by making them stay away from someone else (in this case, their spouse) or refrain from certain behaviors. Here’s what you need to know if you’re interested in obtaining an order of protection. Continue reading “Is an Order of Protection Right for You?”
Mediation is one of the least recognized methods of resolving divorce matters but is extremely efficient and cost effective. Mediation is a form of alternative dispute resolution (ADR) held in an informal setting, where the divorcing parties can resolve their differences without the stress or cost of a formal court proceeding. And for many people, mediation can help avoid the difficulties inherent in the court system. Continue reading “Divorce Mediation and its Benefits”
When a couple gets divorced, the initial thoughts are usually centered around who receives the tangible assets? Parties may readily consider the house, the car, bank accounts etc., but what is often forgotten is the impact divorce may have on your retirement plan. The longer the marriage, and the closer the parties are to retirement, the more the retirement plan can be disrupted.Continue reading “Getting Divorced Later in Life Can Impact Retirement”
The decision to get divorced can be one of the most difficult and traumatic experiences two people may go through. When one thinks of a divorce, they may picture a courtroom filled with attorneys arguing. However, what most people do not realize is that there are several ways to go about the divorce process. Over the last decade, the divorce processes of mediation and collaborative divorce have grown in many jurisdictions to be a cost
Founder and lead shareholder of Amazon.com Inc., Jeff Bezos, and wife, Mackenzie, have recently announced via social media that they will be divorcing after 25 years of marriage. Recognized as the wealthiest man in the world, Jeff Bezos possesses a net worth of nearly $137 billion, most of which he acquired during the course of his marriage. Many have been wondering what the outcome will be, considering that Bezos did not have a standing prenuptial agreement in place. As a result, the terms of their divorce may vary depending upon the state in which they dissolve their marriage.
With 2018 ending in a few weeks, unhappily married couples who are thinking of splitting up should consider the tax consequences of waiting until after the new year.
Under the new tax law enacted by Congress and the Trump administration, the rules regarding alimony will be different. Under the new law, the person who pays the alimony (otherwise known as maintenance in New York State) will no longer be able to write it off their taxes(deduct it from their income); meanwhile, those who receive alimony will no longer have to declare it as taxable income. If the paying spouse wishes to avoid this scenario, it is wise for to file for divorce before the end of the year. Those couples who already divorced will be grandfathered in — which means they will not be subjected to the new alimony law — unless they decide to modify their agreements next year.Continue reading “How New Tax Laws Will Affect Divorcing Couples in 2019”
President Donald Trump promised hefty tax changes prior to his inauguration. One substantial tax change under the Tax Cuts and Jobs Act concerned the deductibility of spousal support.
Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), those receiving spousal support (alimony) were forced to claim the proceeds as taxable income, while those paying the alimony were allowed to deduct the payments from their taxes. However, under the new statute, it is reversed. Now, those that are receiving the alimony are able to deduct the alimony given by their former spouse from their taxes, while those paying the alimony will have to include it on their taxes. The change becomes effective after December 31, 2018.
Continue reading “Spousal Support Shift Under the Tax Cuts and Jobs Act”