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2 tax benefits divorce mediation could provide in 2018

On Behalf of | Jun 25, 2018 | Divorce Mediation, Firm News

Some Kentucky residents may believe that 2018 is flying by. As the month of June rapidly comes to a close, couples contemplating ending their marriages may be looking for a way to finalize their issues before the end of the year since some of the tax benefits that divorcing couples used to take advantage of disappear after Dec. 31. Using divorce mediation could help those couples come in under the wire instead of waiting for their cases to make it through the court system.

For instance, some of the tax benefits that homeowners depend on are changing in 2019. This includes the amount of mortgage loan interest and property taxes that may be deducted. A party wanting to keep the marital home may want to keep this in mind before moving forward with that plan since owning that home will probably become more expensive next year.

In addition, if alimony is on the list of issues that require resolution in a particular Kentucky couple’s divorce, finalizing a divorce in 2018 may be a priority. On Jan. 1, 2019, the spouse making payments no longer receives a tax deduction and the spouse receiving the payments no longer claims it as income. Sources anticipate that the receiving spouse will more than like not receive as much in payments.

Finalizing these and other issues prior to the end of the year may quickly become a priority for many couples. Going through a traditional litigated divorce in court may not allow couples to cross the finish line before the end of the year. Instead, it may be beneficial to agree to divorce mediation, which generally takes less time to complete. This method of divorce provides numerous other benefits as well that couples may not have anticipated, but come to appreciate as the process moves forward.