The New Year is upon us and with the beginning of 2019 will come some major changes to tax laws that potentially impact divorces in New Jersey and the rest of the country. Chief among those is how alimony payments will be handled for tax purposes in a divorce. For the past 70 years, alimony has been deductible for the payor and taxed as income for the payee. The benefit to this was that the payor got to reduce his or her amount of taxable income and the recipient paid the income tax, which was typically at a lower rate than that which the payor would have paid.
When considering a divorce in New Jersey, finances are a big piece of what goes into the decision-making process. Alimony is one of the most significant issues to be considered in divorce proceedings. There are many factors that go into determining whether alimony is appropriate and, if so, the amount and duration of alimony payments.
Ending a marriage is seldom easy and can be particularly difficult when children are involved. One of the more challenging issues to resolve can be that of parenting roles following a divorce in New Jersey. Parents may wish to both be an active part of their children's lives but may have difficulty seeing the possibility of that because of differences with a partner. Co-parenting is becoming a popular option, and while celebrities do not often serve as role models, there are some who are modeling co-parenting methods that others can aspire to.
As adults in New Jersey, people accumulate a myriad of important information that is stored in databases and is important for obtaining jobs, bank loans and any number of other aspects of life. Few pieces of information are as important as one's credit rating. A married couple will frequently establish a solid credit rating through the establishment of credit via mortgages, credit cards or car loans. Many, if not all, of these may be held as joint accounts. If a couple decide to divorce, one partner may be left without a credit rating in his or her own name.
The idea of a divorce in New Jersey is never easy to contemplate. A frequent contributor to stress is brought on by concern about post-divorce finances. While that is certainly a valid issue, having an understanding of what is involved with one's finances can be helpful.
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.
When entering into a marriage in New Jersey it is almost always with the thought that it will be a marriage that lasts. While this holds true in many cases, separation and divorce are still a common occurrence in today's society. Depending on the situation, a couple may decide to separate, but they may not plan to divorce right away. There are many reasons for this.