On behalf of Stange Law Firm, PC posted in High Asset Divorce on Thursday, December 20, 2018.
When a Missouri resident chooses to end a marriage, it may not be a topic he or she cares to discuss. Divorce can be a sore subject for many, and when it comes to a high asset divorce, things just got a bit more complicated. A new tax law is shaking up the way many divorcees proceed financially.
Traditionally, Missouri courts assume that any assets gained during the course of a marriage belong to both spouses, regardless of whose name is on a particular asset. When a marriage is dissolved, the value of any assets is usually split evenly. This can be tricky, because if an asset is a physical item, such as a house or a car, the asset can obviously not be physically split. Many people opt to pay alimony, which is a monthly payment made to the other spouse honoring their share of any calculated assets.
However, new tax laws are going into effect next year, and the current year is drawing quickly to a close. Current laws allow a person paying alimony to count the payment as a tax deduction. The new law eradicates this option, and alimony payments will no longer be deducted. This can be a difference of thousands of dollars.
If a Missouri resident is considering a high asset divorce, he or she may want to bring an experienced attorney on board. An attorney can advise a client of other ways to meet court-mandated distribution of assets. An attorney can help a client understand the new laws, and stand by their side as they finalize a divorce and begin a new chapter without his or her former spouse.