Tax law changes in 2019 mean now is the time to file for divorce in Florida if you expect to pay alimony. According to The New York Times, the tax law eliminates the tax break given to those paying alimony. Currently, if you pay alimony and meet certain guidelines, you may take a deduction for the alimony before figuring the taxes you owe. The new law takes that option away, meaning you may pay more taxes.
Typically, the tax break benefits you the most if you pay a large amount of alimony. Consider if you make $500,000 a year and you pay $150,000 a year in alimony. Currently, you may deduct the $150,000 from your income, making it only $350,000 that you pay taxes on. The new law makes you pay taxes on the full $500,000. It is clear to see how this is not favorable.
This leads to the fact that for some people right now is the best time to file for divorce. As 2019 looms closer, it is essential to get your divorce finalized before the new year to get the current tax break. If you wait, you will face the new tax laws.
It is generally said that a person should take time to consider divorce and not rush into it. While this still holds true, if you are certain you want to divorce, then waiting might only hurt you more in the long run due to the tax implications. This information is for educational purposes only. It is not legal advice.
