Pursuant to the Federal Tax Code changes, which went into effect earlier this year, the deductibility of alimony will be abolished in all divorces which are not concluded before January 1, 2019. All divorces or decrees containing an alimony award prior to January 1, 2019 will retain the deductibility. This change will cost individuals, who cannot conclude their divorce or obtain an alimony decree before the end of this year, tens of thousands, if not hundreds of thousands of dollars. Currently, alimony is an "above the line deduction". This means that for every dollar you pay in alimony, you are able to deduct a dollar of income. For example, if you pay $10,000.00 a month in alimony, you get to deduct $10,000.00 of your income. If you are in the 40 percent tax bracket, you would pay $4,000.00 from every $10,000.00 income that you earned. Consequently, if you get to deduct $10,000.00 for your alimony payment, then you would be saving $4,000.00.
Everyone thinks the final judgement signed by the courts is the conclusion of the divorce. However, nothing can be further from the truth. After the final judgement has been entered there are a number of task that each party must finish. At the conclusion of your divorce case, the first thing you should do is obtain several certified copies of the Final Judgment. You must also review the Final Judgment and/or Settlement Agreement carefully with your attorney to ensure that you understand what you must complete under the terms of the Settlement Agreement and/or the terms of the Final Judgment.
The overwhelming majority of divorces result in parties agreeing to shared parental decision-making subsequent to their divorce. Shared parental decision-making is defined as parents discussing and agreeing upon major issues in their children's lives including, but not limited to education, non‑emergency healthcare (for example orthodontics/braces), and extracurricular activities which would occur on both parents' (both parents' timesharing/visitation).