Kansas residents who file tax returns will want to be aware of upcoming changes in federal tax regulations. This applies most specifically to anyone contemplating filing for a high asset divorce. The changes are set to take place at the stroke of midnight as the first day of 2019 begins.
Current tax laws allow those paying alimony to claim their payments as deductions on their federal tax returns. Anyone filing for divorce or seeking modification of an existing court order pertaining to divorce in 2018 can still get a tax break for paying alimony. The impending changes have prompted some to suggest that anyone planning to divorce should do so during this year, especially if that person thinks he or she will be ordered to pay alimony.
In situations where one spouse earns a lot more income than the other, it is common for the court to order alimony. This is especially true if the other spouse gave up a career to stay home and raise children during marriage and will be struggling to make ends meet post divorce. It’s also true that paying alimony can cause serious financial strain for some people, who may rely on current tax breaks to even out their financial scales.
Tax implications and alimony are only two high asset divorce issues that may be concerning for Kansas spouses. Divorce can be quite complex. If spouses disagree about important financial matters or child-related issues, things can get pretty messy. Turning to an experienced family law attorney for support can help keep stress levels to a minimum.