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Should you get divorced now for the tax break?

Deciding to move forward with divorce is a big decision. For this reason, you should take as much time as you need.

However, while doing so, it's important to understand the impact of timing on many areas of your life.

For example, alimony payments for any divorce finalized after December 31, 2018, will no longer be tax deductible as the result of the Tax Cuts and Jobs Act

When you consider the fact that a divorce can take six or more months to be finalized, you may want to act fast in order to preserve access to this tax break.

While there is no guarantee that alimony will be paid as the result of your divorce, you probably have a good idea of whether it will come into play.

The purpose of alimony is simple: to maintain one person's standard of living after divorce, such as if the person was a homemaker and unable to earn money on his or her own.

What to do next

Again, it's important to note that you shouldn't rush into divorce just because a tax break may be available. If you've been thinking about a split, it does make sense to take action with the idea that it could save you money on your taxes.

In addition to reviewing your situation, take the time to learn more about local and state laws, such as how long on average it takes for a divorce to be finalized.

Paying alimony is a way of life for many people. If you think you'll find yourself in this situation after your divorce, take the time to better understand the current tax break and what's going to happen after the year turns.

Source: CNBC, "Act now if you want to keep this tax break when getting a divorce," Lorie Konish, May 31, 2018

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