Law Offices of David T. Garnes, LLC

Schedule Your Free Consultation

(856)324-4593 | (267)838-9713

contact Menu

Divorce and the new tax law -- it's not just about alimony

Divorce can be a complicated undertaking in New Jersey. It is not normally entered into lightly. With the imminent change in those tax laws that will go into effect on Jan. 1, 2019, there is another factor to be considered. Should a couple divorce sooner or later? This holds true particularly for wealthier couples.

The new alimony law that goes into effect will take away the tax deduction for alimony paid to an ex-spouse. However, alimony is not the only factor affected. Child support issues such as how 529 college savings plans can be handled are changing. The value of privately held businesses and partnerships may also be handled differently under the new law.

Under the current law, 529 plans are only eligible for use for post-secondary education. Under the new law, these accounts can be used for private tuition in elementary and secondary schools. This could impact the availability of those funds for a child's college education, possibly requiring a larger contribution from another source. Where a shared business ownership is involved, the value of the business enterprise could change under the new law because of how certain taxes will be handled. This may cause the value of the business to go up and affect how the value is apportioned in a divorce settlement.

The above issues, and others, could make the decision to divorce a challenge. It might benefit a person considering a divorce in New Jersey to have a confidential conversation with an experienced lawyer who is familiar with the aspects of the new law. A knowledgeable lawyer can review his or her client's assets and liabilities and help advise his or her client on the best path to pursue.

No Comments

Leave a comment
Comment Information
  • Excellent Attorney
    ratings

    “I have used David Garnes on many occasions for multiple matters. He has assisted me for about 4 years and I will continue to seek his counsel as the need arise. His office is both very professional and attentive.”

    Matthew R. 2/12/15
  • I highly recommend Mr. Garnes
    ratings

    “Mr. Garnes was such an amazing attorney, and he has an amazing staff! Mr. Garnes was truly there for me during my time of need. He truly gets the job done, and was available for me on both nights and weekends! ”

    B B. 2/12/15
  • Awesome
    ratings

    “ Mr. Garnes was just great. He help change my life for the better. Thanks again”

    B B. 2/12/15
Email Us For a Response

How can we help you?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

map-direction

Cherry Hill Office
3 Executive Campus
2370 Marlton Pike West
Suite 255
Cherry Hill, NJ 08002

Phone: 856-324-4593
Fax: 856-282-1159
Map & Directions

Philadelphia Office
One Liberty Place
1650 Market Street
36th Floor
Philadelphia, PA 19103

Phone: 267-838-9713
Philadelphia Law Office Map

map-direction
Review Us
map map