Dissolving a marriage generally is not a pleasant process, no matter how amicable the two divorcing spouses may be. After all, divorce can impact a couple both emotionally and financially. The financial aspect of divorce can especially be unsettling for those nearing retirement in Pennsylvania.
Research has indicated that nearly 60 percent of those who have gone through divorce probably won’t have enough money saved up for retirement. Part of the reason for this is poor financial planning for the future. It is for this reason that the division of marital assets is important to incorporate into a divorcing spouse’s financial outlook. It may also behoove the spouse to consider that his or her living expenses will increase following divorce — another important thing to factor into his or her financial outlook.
Understanding the change taking place with alimony — another important item to factor into a financial plan — is also important for those who plan to get divorced in 2019. Right now, the person paying alimony can deduct this expense from his or her taxes, whereas the recipient of alimony has to report it as income that can be taxed. However, next year, alimony will not be tax deductible anymore, which may lead to less alimony being paid.
Divorce can understandably be confusing due to the many decisions that must be made at each stage of the process. It can also be overwhelming given that each decision made can have long-term financial repercussions. However, a family law attorney in Pennsylvania can provide a client with the necessary guidance to make informed decisions that will benefit him or her in the best way possible long term.