June 2018 Archives

How tax law changes can affect divorce

When people in New Jersey decide to divorce, there are a range of financial considerations to keep in mind. Tax law changes could significantly impact when people decide to finalize the end of their marriage. Individuals concerned about these changes may find it advantageous to finalize their divorce in 2018 before the new tax rules begin with the new year on January 1, 2019.

Potential Impacts of the Tax Cut & Jobs Act on Divorce Settlements

Blog Written by:  Lori B. Shlionsky

On December 17, 2017 the Tax Cuts and Jobs Act of 2017 was signed by President Trump and made a number of significant modifications to the Internal Revenue Code ("IRC") that will either directly or indirectly effect newly divorcing couples. Under the Tax Cuts and Jobs Act, in all divorces occurring after Dec. 31, 2018, alimony will no longer be tax deductible for the payor, and alimony received will no longer be considered income to the payee and therefore the payee will no longer be required to pay taxes on their alimony.

Parental Alienation: Brad Pitt and Angelina Jolie's Custody Battle

Celebrities Brad Pitt and Angelina Jolie appeared in the news last week as their child custody battle continues. The newest development in their court case is a court order stating that Angelina is in danger of losing custody if the children's relationship with Brad does not improve. Based on the children's deteriorating relationship with their father, it appears that Angelina may be taking part in behavior known as parental alienation.

Myths surrounding non-custodial parents

In some cases, New Jersey residents who are non-custodial parents may be looked down upon due to a number of myths surrounding separated or divorced parents. However, many of these myths are false as non-custodial parents can still share legal custody, have extensive visitation rights and provide financial support for their children. The myths can be devastating for non-custodial parents who are actively working to remain in their children's lives.

I'm getting divorced... so what does this mean in terms of finances?

Many married couples settle into a regular routine. One spouse will pay the bills and the other will take care of other items on the "to do" list. The result of this arrangement is that, more often than not, one spouse is more familiar with the marital finances and assets than the other spouse. Marital bliss renders this a non-issue and the arrangement is fine ... until things are no longer blissful.

What happens to child support when situations change?

New Jersey parents who pay or receive child support might, over the years, find that the amount of child support paid or received needs to change. The circumstances that lead to this include the children's changing needs, medical issues or income changes due to unemployment or a change in employment.

The impact child support has on public aid

When a couple with children divorces, it can be difficult for the lower-income parent to make ends meet. Child support is used as a means of assistance in this situation. A parent can petition for support directly from the other parent, or they may go on public assistance and the New Jersey government will do everything in its power to collect from the payer. The government does this to ensure the child has what they need without putting undue burden on taxpayers.

Marriages can end at any age

New Jersey residents and others who are age 50 or older are getting divorced at an increasing rate while divorce rates for other age groups stabilize. One thought is that individuals in this age group grew up during a time when the concept of marriage was about fulfillment. It is also possible that the rate of gray divorce is increasing because there are more Americans who are 50 or older.

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