Pennsylvania residents who are preparing to divorce understandably have quite a few questions and concerns. After all, a divorce can be a life-altering event for most people, putting an end to a relationship that, perhaps, lasted for years. No one gets married with the expectation that the union will end in divorce, so the end of a marriage can be an emotional time often made more complicated by the financial issues that must be addressed during the process.
However, despite the emotions involved in a divorce, couples could benefit from taking a stark look at how the divorce will impact their finances. In particular, as a recent report pointed out, couples in Pennsylvania will want to explore how new tax laws that go into effect in 2019 will impact their divorce case and life afterward.
For starters, the biggest impact of the tax law change involves alimony payments. Under the new laws, alimony that is paid will no longer be tax-deductible. And, for the spouse receiving alimony payments, alimony will no longer be considered taxable income.
As the recent article noted, the tax law changes may also impact the terms of prenuptial agreements, as well as any divorce modifications that occur going forward. The exemptions and credits for children have changed as well, so a couple in Pennsylvania going through a divorce who has children together will want to examine how those changes will impact their divorce. Anyone who has questions or concerns about divorce issues will likely need to get more information about the legal impact of their own unique circumstances.