Ending a marriage can be a lengthy and complex process for Louisiana couples and, in some cases, can take an extensive amount of time to finalize. If a person is going through the divorce process yet still has issues to resolve, it may be beneficial to work toward a final resolution before the end of the year. Due to tax changes coming at the start of 2019, there could be significant financial consequences to delaying.
A high asset divorce will have a significant impact on the financial health of both parties, but the impact could be even more significant in 2019. In 2017, President Donald Trump passed new tax legislation that will affect divorce, alimony and the tax implications for both spouses. Essentially, the newly passed laws will remove tax exemptions for those who pay alimony, instead, making alimony non-taxable income for the recipient.
These new tax laws will change things significantly for those who will pay alimony. These changes could be reason to finalize a divorce before these new laws go into effect. In fact, it may be possible to use the pending tax law adjustments as motivation to negotiate and work together on a reasonable and beneficial divorce settlement before the end of 2018.
Divorce professionals across the country, including Louisiana, are encouraging clients to resolve their divorces in 2018 if it is possible. New changes in tax laws and the way people divorce will complicate things, and this process may take even longer if a couple waits until the new year. An evaluation of the individual situation can help a reader understand if a reasonable outcome is possible before 2018 is over.