Tax Season and Divorce: New 2019 Illinois Laws
Posted on February 12,2019 in Alimony/Spousal Support
Divorce laws can seem daunting for individuals who face the end of their marriage. As of January 1, 2019, Illinois regulations became slightly more complicated as new laws swept across the state and country. One significant alteration to the Illinois Marriage and Dissolution of Marriage Act drastically impacts tax claims on spousal maintenance payments.
Spousal Maintenance and Taxes
Until now, alimony has been tax deductible to the payer and taxable income for the recipient. However, for divorces filed after the beginning of the year, spousal maintenance no longer qualifies as a tax deduction to the paying spouse. Simultaneously, the recipient can no longer claim the payment as a part of gross income. Because of the tax implications, this caused a rush on divorces toward the end of 2018, as experts say couples now have less to split between them because of the law change.
The Grandfather Clause
Did your divorce finalize on or before December 31, 2018? If so, you still qualify for the previous tax regulations. If you did not sign your agreement until after that date, or you modified your contract, the new rules become applicable. Anyone considering adjustments to their divorce agreement from now on should be extremely cautious, and as always, seek the assistance of an experienced attorney.
Pre- and Post-Nuptial Agreements
Many couples choose to protect themselves and their interests by filing a marital agreement outlining what they would like to happen should the marriage end in divorce. If you have an existing prenup or postnup agreement, consider having it reviewed by a skilled divorce attorney. These new regulations potentially nullify some items in these agreements.
Contact a DuPage County Divorce Lawyer
If you have questions regarding the impact of new laws with your existing divorce agreement, or if you are considering divorce, an experienced Wheaton, IL divorce attorney can help. Andrew Cores Family Law Group understands the stress that comes with the divorce process and will work diligently to guide and fight for you throughout. Call us today to schedule your free initial consultation at 630-871-1002.
Source:
https://www.wsj.com/livecoverage/tax-bill-2017/card/1513379555
