Couples in California who are considering getting a divorce may need to consider how the Tax Cuts and Jobs Act will impact their lives after their divorce if their divorce agreement is signed after 2018. There are number of provisions in the legislation that include changes to deductions, exemptions, federal tax rates and the Alternate Minimum Tax limit. However, there is also language in the TCJA that divorcing couples should be particularly aware of, specifically those dealing with alimony and child support.
Prenuptial agreements have emerged as an acceptable method for couples from all types of backgrounds in California to talk about financial issues. Poor communication and money disputes represent two of the top motivations for divorces. However, discussing divorce issues prior to a marriage gives partners an opportunity to express their views free of the emotions and stress that accompany the end of a marriage.
Statistics suggest that more and more older spouses in California are considering divorce. The divorce rate for adults 65 and older has tripled since 1990. For the 50 and older age group, it has doubled during the same time frame.
At the start of every school year, California kids have to deal with a host of new challenges. Unfortunately, children of divorced parents face additional hurdles as they begin the school year. By planning ahead, however, divorced parents can help to minimize their children's anxiety.
As the tax laws change regarding alimony for divorces concluded in 2019 or later, many people are looking toward individual retirement accounts as a way to create fair settlements that preserve tax benefits for both parties. When the shifting of the tax burden for alimony goes into practice, the current environment that encourages generous support payments through a valuable tax deduction will change considerably. However, both parties will still be looking for a solution that provides a measure of tax protection for the paying former spouse while providing needed funds to the recipient.
For many California couples, considering getting a divorce may be a major step towards the realization that their marriage is about to end. While former couples should never rush to divorce unless there is violence or abuse in the marriage, waiting to get a divorce finalized in 2019 versus 2018 could have an impact on the former couple's finances, especially if one person wants to keep the family home.
A divorce can leave California residents with legal bills and children to raise on a single income. However, it can also provide a person with a significant asset in the form of the marital home. In many cases, a custodial parent will keep the home to provide stability for any children a couple had while married. Every time a mortgage payment is made, a homeowner increases his or her equity in that asset.
For California families, planning for a child's higher education can be a major priority, especially given the importance of a university degree for future success in many professions. However, the costs of college are rising continuously and may put the expenses nearly out of reach for many families. The College Board estimates that tuition costs rise around 3 percent annually; in order to provide for a child's education, it can be important to put a plan into effect long before a child considers their future educational plans. However, a divorce can add extra complications and difficulties to the already-onerous task of saving for college.
Hollywood, the famous neighborhood in Los Angeles, California, may be known for several things, films and movie stars to name a few, but it is currently responsible for spreading a trend among recent divorcees: bird nesting. Bird nesting is when a recently divorced couple agrees to share a common dwelling by alternating living in it with their children. The children remain in the home, while the parents move in and out according with their visitation schedule
While divorce can be hard on spouses, it can be even more difficult for children. In many cases, however, both parents can agree that caring for their children is the most important task. Even in cases where the relationship is more contentious, many divorcing parents in California work hard to keep their children from being exposed to marital strife or issues with divorce negotiations.