The financial impacts of divorce are often the ones most dreaded by individuals in Utah and elsewhere going through the process. When a person has relied solely on the income of his or her spouse or makes less than a spouse, it is possible that alimony could be awarded as part of the divorce order. However, due to tax changes that will take place next year that leave the paying party on the hook for applicable taxes, even more contention could arise surrounding spousal support.
Because the change does not take place until after the end of 2018, individuals who have already started the divorce process will likely want to get their alimony terms completed this year. Any terms finalized before the end of the year will not have to adhere to the new tax law. As a result, getting those terms on paper and part of a final judgment of divorce sooner rather than later may help reduce conflict.
In a best case scenario, divorcing parties would be able to discuss the financial aspects of their cases and come to terms on their own. Of course, most people understand that this is not always feasible as hard feelings can often get in the way of successful negotiations. However, individuals trying to decide the best way to come to terms on spousal support may want to enlist the help of financial professionals.
There are many aspects of alimony and the changing tax laws that could leave Utah residents with many questions. Fortunately, they could seek help from other professionals than simply those knowledgeable in finances. Experienced attorneys could help concerned parties better understand how alimony and tax changes could affect their particular divorce cases.