The Importance of Filing in June
You may have received our recent newsletter that discussed filing your initial petition by June 20th if you wish to be divorced by the end of the year. If you are wondering why this message seemed so urgent, here is why;
While we are always in crunch time at this time of the year, this particular year it is even more essential to finalize the process by the end of the year. Under the new tax changes, if your divorce is not completed by December 31, 2018, you will be subject to the new laws that no longer allow the payor to deduct the child support payments at the end of the year. In effect, this means that the higher earner will have to pay taxes on the money at the higher tax rate, thereby decreasing the amount of money in the “family bucket” to be used by the entire family.
This new law is not good for either party, because more of the “family funds” will go to the IRS rather than retained by the earner or paid out to the payee.
If you would like to discuss how the new law may affect your particular situation, please give us a call. If you think this may, in fact, be an issue in your case, please make sure to call soon. To complete your divorce by the end of the year, the petition must be filed and SERVED by the end of June. To ensure we can make this happen, we need to have your petition filed by June 20, 2018.