Like it or not, the tax laws are changing.  New tax laws that take effect January 1, 2019 may also impact your divorce.  Understanding the new tax laws may help you decide if it's better to complete your divorce by December 31 or wait until the new year.  The attached article provides a good summary.  
https://www.nytimes.com/2018/07/27/your-money/divorce-tax-law.html?smprod=nytcore-ipad&smid=nytcore-ipad-share

Whether you divorce in 2018 or wait until next year, California Mediation Solutions will help you resolve your divorce timely, efficiently, and cost-effectively.  Call today for a free consultation.  951-328-8400.

July is all about celebrating our independence, but if you're getting divorced, do you know how to create your own freedom and independence in your new life? 

Divorce or legal separation can be an emotional and financial rollercoaster.  When one spouse makes more than the other spouse, the Court may order the higher income earner to pay the other spouse alimony, or spousal support.  For as long as most of us divorce attorneys can remember, spousal support has been a tax deduction for the payor spouse and taxable income to the spouse receiving it.  

However, that's all about to change.

Commencing January 1, 2019, spousal support will no longer be a federal tax deduction for the payor spouse and will not be taxable income to the paying spouse.  Since the new tax law only affects spousal support orders made on or after January 1, 2019, divorce attorneys and the courts expect this will increase the number of divorces in 2018.

California's current spousal support guidelines (Family Code section 4320), were constructed with tax provisions in mind.  However, with the changes to the federal tax laws starting January 1, 2019, this could impact the amount of spousal support.  For example, if the payor's taxes increase, the amount of spousal support will likely decrease.  This, in all likelihood, will affect child support if the payor has less income available after taxes to pay child support.  

The changes in the federal tax laws may give some unhappy couples an incentive to untie the knot and resolve their divorce case before the end of 2018.  California Mediation Solutions has helped divorcing couples determine the appropriate amount of spousal support in order to reach an agreement outside of court.  Contact us today for a free consultation to see how divorce mediation can resolve your case before the tax laws change.  951-328-8400

You should consult your accountant or tax advisor to see how these tax law changes will affect you.

Summer is officially in full swing and things have been heating up around the U.S. Sweat is beading on our foreheads and we’re looking for ways to cool down, while still enjoying the sunshine and outdoors...

And don’t forget to plan financially! Summer camps and increased childcare throughout the summer will cost money. Make a plan to cover these expenses and ensure both parties understand who’s in charge of what.