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Is There Any Other Way to Save Financially During Divorce With Alimony Deduction Disappearing?

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With the alimony deduction disappearing, we’ve seen a number of couples rushing to get divorced by December 31 of this year. If this is something that has you concerned, below, we’ve discussed some tips on how to speed our settlement along or, alternatively, how to save money in other ways as you go through divorce:

Separate the “Musts” From What’s Not Important

First and foremost, few people going through divorce have/take the time to stop and think about what is really, really important to them, and what they can live without. However, having clarity on this—as well as what might be most important to your ex—will help you to make smart decisions in settling quickly. The more insight you have on this in general, the more effective your negotiations will be, in less time. Also keep in mind that you can always modify your agreement in the future while still holding onto these same tax benefits you get by filing by end of December.

Make Signing A Good Deal Your Number One Priority

However, while the tax benefits of getting your divorce finalized in 2018 (i.e. the alimony deduction) are important, they are not worth signing a settlement that is not in your best interests. Make sure that you work closely with your attorney and anyone else who is important in terms of your finances, such as your financial planner, so that you understand the long-term repercussions of your proposed settlement.

Strategic Alternatives

Also keep in mind that you can clear the way for alternatives by structuring the property settlement tax in a way to save some money as well. Smart planning with regards to charitable remainder trusts and other planning strategies can also minimize some of the benefits lost from the tax law change as well.

Other Ways to Save During Divorce

Some additional, smart strategies to save money during divorce include the following:

  • Make sure you understand your fee agreement;
  • Get organized before every conversation and relevant meeting;
  • Gather as many of your financial documents on your own as you can. This includes filling out your financial disclosure statement; and
  • Try to work on an agreement with your ex on personal property items.

Contact Our Experienced Florida Family Law Attorneys

If you live in Florida and have questions about how to strategically manage your divorce so as to take advantage of a number of financial strategies, contact our experienced family law attorneys at Arwani Law Firm, PLLC today to find out how we can help.

Resource:

forbes.com/sites/heatherlocus/2018/11/16/going-through-a-divorce-start-these-3-steps-today-to-save-on-taxes/#775a37cf1b60

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