New Alimony Tax Law And How It May Impact Bergen County New Jersey Divorced Residents

We recently read a great article by By Paul Sullivan in the New York Times on the new 2019 tax change and the impact that it may have on divorce and alimony. Here is a recap of what Paul Sullivan had to say in the article.

Divorce lawyers and accountants regularly quicken their clients to prepare for troublesome situations. It is wiser to be prepared presently than to suffer the future possible outcomes. The modern tax law is further prompting parting spouses to view more rigorously the tax advantages of their kids and the values of privately held enterprises and companies.As such, there is a great amount of wealth at stake for prosperous couples.

Below are four sections that couples contemplating divorce should analyze going into 2019.

cialis diario seguro sildenafil sandoz cena go site informative essay graphic organizer xmas essay in english https://tetratherapeutics.com/treatmentrx/flagyl-400-mg-tabletki/34/ proventil image http://go.culinaryinstitute.edu/how-to-change-your-name-on-ipad-fortnite/ summary response essay examples viagra effects on women ric flair speech capadulla herbal viagra viagra utilisation prozac and viagra malaria research paper https://homemods.org/usc/introduction-for-argumentative-essay-examples/46/ https://www.mitforumcambridge.org/multiple/a-persuasive-essay-outline/2/ can cialis cure impotence https://rainierfruit.com/viagra-commercial-2015-actress-football/ cialis muscle pain back pain professional university personal essay samples online mfa programs creative writing i learnt a lesson essay se puede tomar mas de 100 mg de viagra delimitations in a research paper essay alienation brave new world citing online essays alli online https://ncappa.org/term/glamour-my-real-life-story-essay-contest/4/ see https://norfolkspca.com/medservice/cheap-levitra-a/14/ essays on the transatlantic slave trade 1.Alimony

According to the article, the tax reform could grow problematical in divorces resolved after Dec. 31, 2018, because now one spouse will lose a tax advantage and the other will obtain one. Underneath the brand-new system, the alimony payer will be taxed on the full amount while the alimony receiver will not pay tax on the money.

2. Prenuptial Agreements

For couples that have prenuptial agreements, the result should they divorce is presently dubious. It is popular in prenups for divorce lawyers to include alimony installments based on years of marriage and a condition stating alimony payments are deductible for an individual spouse. Now, that may be temperoarily unclear whether those conditions would endure in 2019 and going forward.

3.Business Valuation

Another possible consideration is how private businesses shall be evaluated. This is often a critical element of divorce agreements. However, the new tax law raises the cash flow of some pass-through entities — businesses where the taxes on the incomes are paid by the owner, not the business — in a process that increases their value.Comprehending this may demand more appraisal specialists, rising the expense and time it may take to obtain a divorce.

4.Other Assets

Child support has forever been nondeductible and may still be. However, the article states that some practitioners are suggesting that their clients examine closely the tax advantages of various assets. For example, couples may contemplate taking a house instead of an ex-spouse’s retirement plan. With the new tax reforms, especially in states where deductions for high state and local taxes have been capped, may leave the family home less valuable in the long term than a retirement account with comparable value. Seeking professional guidance on this will be key for couples entering divorce.

If you live in Bergen County, New Jersey and may be facing the possibility of divorce, to learn more, ask questions, and seek advice from a lawyer, give attorney Sheena Burke Williams Esq. a call at (201) 497-8700. She’d love to talk.

DISCLAIMER

This blog post contains MARKETING MATERIAL and general information and opinions from Burke Williams, LLC and is not intended to be a source of legal advice for any purpose. Neither receipt of information presented on this blog, nor the sending of any email or other electronic communication to Burke Williams, LLC or its lawyers through this blog, nor the sending of any electronic communication through any of Burke Williams, LLC’s site and social media pages linked to this blog shall create an attorney-client relationship, and any such email or communication will not be treated as confidential.

No reader of this blog should act or refrain from acting on the basis of information included on this blog without seeking legal advice of counsel. Burke Williams, LLC expressly disclaims all liability with respect to actions taken or not taken based on any content in this blog. Furthermore, Burke Williams, LLC expressly disclaims all liability with respect to actions taken or not taken based on any content on Burke Williams, LLC ‘s site and social media pages linked to this blog.

Leave a Reply

Your email address will not be published. Required fields are marked *