If you’re going through a divorce, you have to make sure that you’re cautious about financial matters. A money-smart divorce might not seem possible, but it is with the right preparation and planning.
There are some factors that will determine if your divorce goes more smoothly than expected, like if your spouse is willing to negotiate or give you the things you want. Sometimes, divorces are extremely complex, and there can be a lot of animosity. In those cases, protecting your own interests is vital.
In 2019, one of the biggest changes to high-asset divorces is that alimony is not treated the same by the Internal Revenue Service. The person receiving alimony does not have to pay taxes on it, but the person paying alimony does. That’s harmful to many couples because it means that the person paying will be less likely to want to pay out (there is no tax deduction any longer), and the person receiving it is likely to receive less than they would have in the past.
Changes to the law like this are important for anyone to know. If you intend to seek spousal support or alimony, you may find that your spouse doesn’t want to give you what you want. It is more costly to pay out alimony today than it was in the past, which can cause hiccups in your divorce plan.
Our site has more on alimony and what you can do if your spouse refuses to pay out spousal support. We can help you get to know your rights and what to expect.