Articles Posted in Alimony

The Republican Tax Bill  brings sweeping changes to the nation’s tax code.  As the country adjusts to the revisions and comes to understand the implications, we take some time to highlight the immediate impact this law will have on  families –both intact and those who are facing divorce.     Follow this blog for more details later.

Revisions in the tax code will affect:

           EDUCATION:   529 accounts are expanded to include private school and home schooling.

Currently families can save for children’s college education with the use of tax protected 529 accounts.  In a 529 account your money grows free of any capital gains taxes and  currently it can be withdrawn without any penalty to pay for higher education expenses.   Under the new bill,  the use for money in 529 accounts is expanded.  You  now will be able to withdraw up to $10,000.00 per child, per year,  to pay for private school or for educational expenses that are used for home schooling.   Money that is in a 529 account also may be rolled over to ABLE accounts, which are used for people with disabilities.

            ALIMONY: Alimony is no longer deductible for the payor spouse and no longer taxed to the recipient spouse.  

This  change in  the tax provision regarding alimony does not go into effect until 2019; however, parties in the midst of divorce must be aware of it now as it may have a significant effect on negotiations in equitable distribution agreements.   Understanding the effect of this dramatic change in the tax implications of alimony is important.   If you currently are receiving or paying alimony your agreement may be modified with certain specific language to comply with the new tax rule.  Your attorney should have access to the modification language. Continue reading

My spouse cheated on me “I Want a Divorce”

597241_troubled.jpgIf you feel emotionally injured because a spouse is unfaithful, I want a divorce may be the first response. If the adultery is longstanding, and the love and trust are gone from the marriage and cannot be repaired then divorce may be your best option. However, I counsel my clients first to be sure their marriage is irreparably broken before considering divorce. If you want a divorce to ‘get back” at your spouse and take him/her for all they are worth, because he/she cheated, then learn a bit about Pennsylvania Divorce Law.

While, under certain circumstances, adultery still may be a basis for a “Fault ” divorce in Pennsylvania, it may not prove to be the answer that you seek. The process may be complicated, protracted and have unintended effects on children. Pennsylvania also is a No Fault state, which means that if both parties consent to a divorce, or if the marriage is broken beyond repair and the parties have lived separately for a minimum of two years, so long as conditions are met, the parties may get a divorce, even if one party objects.