Articles Posted in Divorce

December-31-270x300President Trump signed the Tax Cuts and Jobs Act in December of 2017, overwriting a decades old tax law. The old rules allowed alimony to be tax deductible by the spouse paying. The spouse receiving the alimony payments was required to record them as taxable income. After the new law takes effect on January 1, 2019, alimony paid is no longer be deductible. If you are going through a divorce, you should consider finalizing it before the end of 2018.

How Will this Affect Those Going Through a Divorce?

The new tax law comes into effect on January 1, 2019. When it does, wealthier couples or couples in which one partner earns significantly more than the other will be affected the most. Because alimony will no longer be tax deductible, the spouse paying alimony will see smaller returns. Meanwhile, the spouse who received alimony might see less money coming in. This is mainly because the main incentive to pay more, the tax exemptions, will be removed.

A hand holds 3 burning billsGoing through a divorce is rarely easy and often stressful. A trusted Jacksonville divorce attorney can help guide you through the process, but the clients still have to keep certain things in mind. Divorce often brings up concerns about finances and children. It can be an emotional process that leads to many financial errors that make things difficult for everyone going forward. Here are 4 money mistakes to watch out for during a divorce.

Rushing Without Taking Everything into Account

No one wants to have to go through the hassle of a divorce. However, it is very important to avoid rushing, as it can cause you to miss important details such as:

woman hiding money behind her backUnfortunately, divorce can be a very difficult affair that sometimes brings out the worst in people. One of the ways this happens is when one spouse attempts to hide their assets. There are many reasons why someone would keep certain assets hidden. They may simply want to hide money, or they could be trying to protect certain property that they do not want to risk losing. Though it may not be a criminal offense, hiding assets in a divorce in Florida can still lead to serious legal consequences.

What Are the Consequences for Hiding Assets in a Divorce?

The state of Florida practices equitable division of assets in the cases of divorce. However, this does not always mean an even 50/50 split. In some cases, the court may rule in favor of one spouse receiving more than the other. If the court finds that your spouse has been hiding assets, they will face various penalties, including: