You finally made the difficult decision that the marriage is over and you need to proceed with a divorce. However, you feel some trepidation by proceeding forward. Understandably, there are stories of divorce cases that have bankrupt families, have lasted for years and years in court with high levels of animosity frequently appear in the news. I’m sure you are asking yourself, “Is our divorce going to end up that?”.
Pursuant to the Federal Tax Code changes, which went into effect earlier this year, the deductibility of alimony will be abolished in all divorces which are not concluded before January 1, 2019. All divorces or decrees containing an alimony award prior to January 1, 2019 will retain the deductibility. This change will cost individuals, who cannot conclude their divorce or obtain an alimony decree before the end of this year, tens of thousands, if not hundreds of thousands of dollars. Currently, alimony is an "above the line deduction". This means that for every dollar you pay in alimony, you are able to deduct a dollar of income. For example, if you pay $10,000.00 a month in alimony, you get to deduct $10,000.00 of your income. If you are in the 40 percent tax bracket, you would pay $4,000.00 from every $10,000.00 income that you earned. Consequently, if you get to deduct $10,000.00 for your alimony payment, then you would be saving $4,000.00.
My wife, Karen, and I have had the pleasure of raising two daughters. When they were younger, it was easy to have them dress up in costumes on Halloween and take them out in the neighborhood to go trick-or-treating. But as they grew older (generally between the ages of 12 and 15) going trick-or-treating was no longer "cool" or the thing to do. Generally, about this age is when tweens and teens no longer want to go house to house gathering candy but, want to spend time engaging in activities with their peers. Parents want to make sure that our children are safe while spending time with their friends. Often the best way to do so is to sponsor a party at your house. By doing so, you can ensure their safety by monitoring their activity, therefore giving you piece of mind. Among the activities suggested are Halloween/Harvest Festivals: