Many people in New Jersey will get divorced before the year ends. In the past, it was not uncommon for people to claim alimony payments as deductions on their federal tax returns. Anyone who had planned on doing so in a divorce that will settle after 2018 will want to update their information regarding recent tax law changes.
In the future, no deductions can be claimed for alimony, neither will anyone receiving such payments be taxed for the income. Some say this throws the nation back in “legal” time nearly 80 years. Since 1942, payors have been able to deduct alimony on their federal tax returns while recipients were taxed on the amounts they received.
Tax updates have prompted a rush in divorce court because many people want to make sure their cases are finished before 2018 comes to a close. Business owners will also want to research recent changes in tax laws regarding the valuation process. In order to obtain the fairest and most agreeable settlement possible, it is typically helpful to seek guidance from someone well-versed in all aspects of divorce law, including the most updated tax and business regulations.
The court takes many guidelines under consideration when making decisions in divorce regarding alimony. A New Jersey judge will often pay close attention to the type of lifestyle the spouse who has requested alimony was used to during marriage. Incomes of both spouses is also a significant factor. An experienced family law attorney can help a concerned spouse protect his or her rights and best interests.