Many Florida spouses have grown used to the tax deduction that comes with paying spousal support. It can certainly take some of the sting out of those payments and is a welcome relief at tax time. The newly signed tax reform package, however, eliminates the alimony tax deduction. That will change the financial landscape for many divorced spouses and could also lead some married folks to seriously consider filing for divorce.
Many Florida spouses are carefully watching the progression of the Republican tax plan. There are numerous controversial aspects of the plan, but one that has sparked debate involves the elimination of the alimony tax deduction. That could change the financial landscape for hundreds of thousands of Americans, which is an unwelcome change in many households.
As Florida residents debate the recently proposed GOP tax cuts, they may want to take a close look at the provisions within the proposal. One of the ways that Republican lawmakers plan to pay for tax cuts is by eliminating the tax deduction for alimony payments. That can make a big difference in the bottom line for many Americans.
Any Florida couple that has been through a divorce knows that it is a difficult experience. For some couples, the finalization of a divorce does not signify the end of marital turmoil. Many couples continue to argue in family law court years after divorce over disagreements of child custody or alimony. One couple in another state has an upcoming trial to settle their alimony disagreement.
If there is one thing that Florida residents can be certain of, it is the fact that change is inevitable. This is true when it comes to personal relationships, and also to matters of employment. As part of a divorce, many people are tasked with making alimony payments. When an unexpected job change leads to a reduction in income, meeting that financial obligation can be a challenge.
When a Florida family goes through a divorce, ongoing payments are often made from one party to the other. Those payments are usually classified as either child support or alimony. It is important to understand, however, that there are instances in which payments may not fall under either category, making it hard for the paying party to claim them on his or her taxes.
Your spouse may agree that you made the sacrifices that supported his or her career success and may have expressed gratitude over this fact. However, now that you are divorcing, sharing that significantly higher earning potential with you in the form of alimony may have lessened the appreciation of your contribution. Understanding the ins and outs of spousal support may help both of you to approach the table with reasonable expectations so you can come to an agreement without a court battle.
Many Florida residents are required to pay spousal support to former husbands or wives. While very few people enjoy the practice of handing over a portion of their income, most accept the fact that the payments must be made. There are certain cases, however, in which the recipients of alimony have acted in dishonest manners and violated court orders pertaining to spousal support. In such cases, the spouses making the payments can reapproach the court to ask for modifications or terminations.
Preparing to end a marriage is a serious matter. For many Florida spouses, concerns over all of the unknowns can be virtually debilitating. In fact, many couples stay married long after their union is defunct, based on worries concerning property division, child custody and alimony. As with so many things in life, the realities of these issues are often far less drastic or negative than people believe.
Many Florida spouses expect to receive spousal support as part of their divorce. Having this source of additional income can make a huge difference in the financial bottom line for divorced spouses. While alimony is part of many divorce settlements, it is important to understand that this resource only exists during the lifetime of the paying party. Once that former spouse passes away, so do the payments. The best way to ensure continuation of spousal support after the death of an ex is to obtain a life insurance policy.