The New Tax Law is Almost Here: How it Could Impact Your Divorce
Last March, we posted about how the new tax law could affect divorce proceedings in Oregon. Now that the law takes effect in a few weeks, it is helpful to take a closer look at how the changes to current laws will impact couples who divorce after January of 2019. As of the first of the year, the tax treatment of alimony, which has been in effect since 1942, will be overhauled. Whether your marriage is stable or a divorce is on the horizon, it is important for you and your spouse to revisit the terms of your prenuptial or postnuptial agreement and make any necessary modifications based on the impending changes the new tax law will bring.
Major Changes to Alimony Payments
Under the new tax law, alimony payments will no longer be tax-deductible to the spouse who is paying them, and the recipient will no longer be taxed on the income. State alimony laws will need to be revisited and possibly revised based on the new federal tax law. In particular, couples who have prenuptial or postnuptial agreements that are based on the old tax law will need to modify their agreements to align with the new law. Before the law takes effect, it is a wise idea to meet with an experienced divorce or family law attorney who can help you understand how the new alimony parameters will impact the terms of your divorce and your financial reality after the divorce is finalized.
Take Action Today
Even happily married couples are encouraged to revisit their prenuptial agreements and make any necessary modifications. Before the stress of divorce looms large, having a clear articulation of what will happen if you find yourselves pursuing a separation is highly recommended. Oftentimes, mediation is an effective venue in which you can collaborate with your spouse and an experienced legal professional to review and revise your prenuptial agreement. Lee Tyler Family Law, P.C., based in the Portland area, can help you focus on your goals and understand how the new law will affect your financial future. Call our office today at (503) 233-8868 to learn more.