Going through a divorce can often be a lengthy process for couples in Maryland and others around the country. They must address a multitude of issues as they work toward separating the various aspects of their lives. Though a divorce is not something that should be rushed, many experts have suggested that those contemplating a divorce should consider finalizing it in 2018. The impetus behind this suggestion concerns the new way alimony will be treated for tax purposes, beginning next year.
For decades, the person who paid alimony was able to deduct the amount from federal income taxes. The recipient was required to pay taxes on the amount. However, for those divorces finalized in 2019, the situation will be changed. The payer can’t deduct the alimony, nor will taxes have to be paid by the person receiving it.
IRS officials noted that there has been a discrepancy in the amount taxpayers reported for alimony deductions versus the amount of taxes paid on alimony payments. Many financial advisers are urging their divorcing clients to file quickly in the event there are waiting periods between filing dates and finalization. Lower alimony payments are anticipated going forward since payers will no longer benefit from the tax deduction.
Alimony, or spousal support, is simply one of the numerous issues that a couple needs to address when a marriage comes to an end. A Maryland divorce lawyer can work with a client to reach agreements that are beneficial both now and in the future. A trusted attorney will ensure that every effort is made to obtain a favorable outcome in the divorce process.