Couples that are considering getting a divorce may want to finalize things before the end of 2018. And with new tax laws that have recently been enacted, many may do just that, possibly making 2018 the year of the divorce. There are four new tax laws that will impact a family’s finances after any divorce that is finalized on or after New Year’s Day 2019.
The most talked-about new tax law affects alimony payments that were once tax-deductible by the spouse making the payments. While Texas law does not provide for alimony, in certain cases spouses may be entitled to spousal maintenance, which is treated as alimony for tax purposes.
While spousal maintenance payments have previously been claimed as income by the spouse receiving the payments, that spouse typically fell in a lower income tax bracket, so the total taxes on alimony were lower than if the payor spouse had claimed the same income.
That will change in 2019. As of January 1, spouses paying spousal maintenance payments will have to claim those amounts as income. That will not only hurt the person paying maintenance, but also the person receiving it, as they may face lower maintenance payments to make up for the increased tax cost.
The division of assets has also been affected by new tax laws. As of the new year, the amount of interest on mortgage payments and the amount of property taxes that can be deducted on tax returns will be reduced. This will make home ownership more expensive.
To make matters worse, those who sell a home while married can make a profit up to $500,000 without tax penalties. Single individuals can only realize half of that, up to $250,000. Those who will not be able to afford a home after divorce may wish to sell it before their divorce is finalized, depending on the anticipated net profit.
When children are involved in a divorce case, it always makes things much more difficult. The new tax laws have not helped here, either. The new code strikes out the exemption rule for children during the years 2018 — 2025.
While this will be true for any parent that claims children on their tax returns, that parent may also be eligible for new child tax credits in the new year. As of 2026, the exemption will revert to $4,000+ allowed per child.
Finally, the new tax laws also affect those who have already divorced or are considering it and also have pre-nuptial or post-nuptial agreements. The new laws may have nullified some of the arrangements outlined in these contracts, meaning couples that hold them should review them with a family lawyer that can explain what will and will not stand when the new tax laws come into play.
“It is important that any couple serious about divorce finalize the proceeding before 2019,” says Sharon Ramage of The Ramage Law Group. As there is a 60 day waiting period, it is important that couples wishing to finalize divorce during 2018, file before October 15, 2018. “While this may sadly make 2018 the year of divorce, acting now can potentially save families thousands of dollars down the road.”
In loving memory of Joseph Robert Kapacziewski, who passed away in 2023 at the age of 41.
In loving memory of James Stuart Edmonds, who passed away in 2023 at the age of 84.
A man was shot in front of a lounge on Columbia Pike early this morning, continuing a string of violent incidents.
Good Friday evening, Arlington. Today we published articles that were read a total of 17124 times… so far. 📈 Top stories The following are the most-read articles for today —…
YULA’s ultimate frisbee spring season is now open for registration. We offer programs for middle and high schoolers – open to all players, whether they are new or have previous experience.Middle SchoolIn the Middle School league, mixed-gender teams practice once during the week and have games on Sunday afternoons. Spring league is a fun, safe, and positive environment. The season begins mid-March and wraps up with a tournament in early June. There are several options for practice days, so we can often work around schedule conflicts with other sports & activities.High SchoolThe High School program is organized by school of attendance and teams are classified by gender. New players will learn the basics in a supportive, welcoming environment. Experienced players will continue to develop their skills, and enjoy competition with other high school programs. The season concludes with a state level championship tournament in late May.All players are guided by experienced coaches who emphasize sportsmanship and good spirit. Ultimate is a fun sport with great camaraderie!YULA does not want finances to limit anyone from participating. Our middle school program offers a “Pay What You Can” cost structure and our our high school program is offering a $50 discount to new players.Visit our website to register and learn more. Sign up with a friend, but don’t delay, the season starts in March!http://www.yula-ulti.org
The Arlington-Aachen High School exchange is returning this summer and currently accepting applicants.
The sister-city partnership started in 1993 by the Arlington Sister Cities Association, which seeks to promote Arlington’s international profile through a variety of exchanges in education, commerce, culture and the arts. The exchange, scheduled June 17th to July 4th, includes a two-week homestay in Aachen plus three days in Berlin. Knowledge of the German language is not required for the trip.
Former participants have this to say:
_”The Aachen exchange was an eye-opening experience where I was fully immersed in the life of a German student. I loved biking through the countryside to Belgium, having gelato and picnics in the town square, and hanging out with my German host student’s friends. My first time out of the country, the Aachen exchange taught me to keep an open mind, because you never know what could be a life changing experience.” – Kelly M._
Valentine gifts for someone special or for yourself are here at George Mason University from noon -4pm on February 14, 2023. Satisfy your sweet tooth with Kingsbury Chocolates, find a handmade bag from Karina Gaull, pick up treats from Village