If your divorce finalized on or before December 31, 2018, anyone paying alimony can claim spousal maintenance expenses to receive a tax deduction. Additionally, the recipient of the alimony will declare their payments as taxable income. However, new laws swept the nation affecting divorce judgments and modifications as of January 1, 2019. Here is how the new rules will affect you.

The Party Making Payments

If you finished signing the divorce settlement last year, the new tax laws do not pertain to you. Anyone just tying up the loose ends of their divorce or making modifications this year need to know that, going forward, any alimony paid is no longer tax-deductible.

How much you spend is also different with new calculation guidelines. Previously, maintenance payments were calculated by subtracting 20% of the recipient’s gross income from 30% of the gross income of the payor, capping out at 40% of the total combined gross income of both parties. One new change uses net income rather than the previous gross income standard. Today, a spousal maintenance payment is calculated by subtracting 25% of the recipient’s net income from 33.33% of the payor’s net income.

You’ve heard it said that “timing is everything.” The same idea is true for divorce. Although sometimes you have no control over when your marriage comes to an end, you can control the speed in which you file and obtain information. Divorce timing plays a large part in tax filing, but it also can give you a slight advantage during the proceedings. Find out more about filing when the time is right for you:

Make the First Move

Waiting for your spouse to file for divorce first is one of the worst mistakes you can make. There are legal benefits to being the one to initiate the process. Filing first can give you better terms from the very beginning. When a judge issues the temporary order regarding support or custody, the one who files typically has more control of the situation, allowing you to be in control while the divorce is still pending. Filing first also allows you to determine the end date of the marriage, which can protect you from any potential unnecessary expenses from a hostile ex-spouse.

Tax Considerations

When it comes to tax time, whether you file jointly or separately depends on the date you sign the divorce agreement. Typically speaking, filing a joint return usually works to your advantage and saves money. However, in some cases, you might be eager to register separately, because even if your divorce decree states that your spouse is liable for all taxes, the IRS still can hold you accountable. There are also tax consequences when dissolving a family business as a part of the property division. In fact, most tax considerations are based on the timing and duration of events throughout the year. Based on the IRS rules:

If you are considering divorce, there are a few things you must consider completing before heading to court to file. Performing these tasks before initiating allows you to be better prepared and more confident throughout the process. Not only that, but your advanced preparation will shorten the overall divorce proceedings, lessening stress for you and your family. Consider these behaviors:

Be Sure You Want Divorce

It is ill-advised to send divorce papers if you do not know for sure you want a divorce. Once you address those documents, it becomes difficult to reconcile a relationship after, even if you change your mind. Be sure to exhaust every other avenue before taking that leap.

Decide Your Parenting Time Goals

Except under extreme situations, you and your spouse are likely to split custody. Sit down and review work schedule, school schedule, and other obligations and create an arrangement that you would like. If you build one that also allows for time for your ex to spend with the children, they are more likely to agree to the terms.

Although it may be difficult to remain in the same home as the spouse, you are separated from or divorcing with, leaving the house is among the most disastrous decisions anyone makes during the divorce. Once you go, there is no guarantee that you will ever make it back into the home, or that your items will be there and in one piece once you get back. Here are of the leading reasons why you should not leave your home if you are facing divorce.

Custody Complications

If you leave home, and you leave the children behind, that is a genuine possibility that you will have “points deducted” when it comes to both property division and parenting time arrangements. Any spouse who chooses to walk away from home puts themselves in the unfortunate position of being an outsider in the family. Being the outsider is not a secure vantage point during divorce. Think of it from the judge’s point of view: they must do what is in the best interest of the children, and in many cases, the children do better if as little as possible changes. When children remain in the home, they have the same school, same friends, and the same bedroom. Before you leave the house and the children, protect yourself and secure temporary parenting time agreement for your case.

Property Concerns

If you leave home, your spouse has total control of the property. Although you both have joint interests, once the locks change, court orders will become necessary to enter the home again. Unless you gather your personal belongings with you at the time you leave, you must entrust all of your belongings with your spouse. If you need to go but cannot take your items with you, you should make an inventory of all of your articles and photograph the ones of high importance.

Divorce is a messy business, no matter the situation and specific details. Although avenues are available that make the process more amicable, it is no easy feat separating a marital union into two separate lives. Some cases have fewer factors for consideration, such as those with a short duration, no kids, and a little marital property. Once you begin piling on the elements and building a life together, the process becomes complicated. Every divorcing couple has a lot to lose, but high asset divorce accompanies other uncommon difficulties. Although the divorce process is the same, regardless of your net worth. However, when there are more properties, businesses, and other complexities, the chance for mistakes increases. These are the most costly mistakes you will want to avoid in your high asset divorce.

Acting Too Quickly

No one wants to linger in the divorce process longer than necessary, but it is often not beneficial to your case to speed through the process without careful consideration. Regardless of the emotional concerns, divorce is a legally binding contract that has a dramatic impact on your financial status. Your long-term financial stability depends on the agreement. Do not haphazardly agree to terms to rid yourself of the discomfort of the situation.

Hiding Assets

It is not uncommon that one spouse does not want to share with their ex. Although you may feel owed or otherwise entitled, you are under legal obligation to disclose all assets during the divorce process. That includes avoiding the temptation of transferring money to other accounts or third-parties for safe-keeping. It is very rare that a spouse succeeds in an attempt to conceal funds. You will be discovered, and it will put you at a disadvantage throughout the remainder of the proceedings.