Most households in Pennsylvania need 50 percent or more of their income just to make ends meet. In families that include a primary breadwinner rather than dual, full-time incomes, deciding to divorce may mean that a major financial adjustment is pending. In addition to considering how much money it will take to start afresh as a single person, anyone who plans on filing for physical custody of his or her children will also have much to consider regarding financial care of the kids.
Day-to-day finances are a high-priority consideration in most divorces. There are also several issues having to do with taxes that may have significant impact on a particular situation. For instance, those settling a divorce after the last day of 2018 will be subject to new rules under the Tax Cuts and Jobs Act.
In the past, someone paying alimony was able to deduct the amount on his or her income tax forms. The person receiving had to list the amount as taxable income. Those paying alimony will no longer be able to treat it as a deduction, which may launch some people into higher tax brackets.
Many Pennsylvania spouses may consider this information as an incentive to finalize their divorces before 2018 ends. Anyone with questions about divorce, in particular new tax laws, may seek answers by requesting a meeting with an experienced family law attorney. Issues such as child custody, support, property division and alimony are key factors that can make or break a wallet, which is why it is a good idea to rely on experienced representation in court to protect one’s assets and best interests.