House republicans have proposed a change to the current spousal support (alimony) laws that affect divorces all over the country. The change would take away the ability for the payee to have the alimony amount deducted from his/her taxes. In addition the recipient would no longer be able to have alimony count as taxable income.
Breaking down the details
Women are still among the majority of spousal support recipients in our country. This means that the majority of women in this category will have to manage the same with less; and children under their care are consequently exposed to the jolt of this change.
Here are some key points to consider:
- Legal disagreements are likely to arise, forcing many into expensive litigation procedures to find a resolution.
- Contested divorce rulings often base decisions on the tax factors involved in spousal support.
- Without tax deductions from alimony, the government no longer lends a hand to the recipients (namely women and children).
- Women over the age of 50 are at a higher risk of experiencing poverty after divorce.
- If approved, the proposal would affect divorces filed after December 31, 2017.
Is it worth it?
Undoubtedly, the stakes just got raised for couples considering a divorce. As a natural consequence to this pending change is the need to carefully count the cost of divorce. Examine the reasons you want to make the split in the first place and whether or not it is a road you're prepared to embark on.
Take a sober look at what is truly best for both individuals, including any children involved. Also, determine where you stand financially and what your plan is for financial stability afterwards. After all, money has a way of tilting decisions-- for better or for worse.
How willing would you be to get a divorce if you knew you would suffer financially for it?