Upcoming changes to laws can have an impact on what people can expect if they are going to wait until 2019 to divorce. While these won’t impact some people, they can actually be a huge consideration for people who will be affected by them.
As of Jan. 1, 2019, the way the marital home impacts you will change. A decrease in the way property taxes are deducted and in the amount of mortgage interest you can claim on taxes goes into effect. This might be a consideration when you are going through property division to determine what to do with the home.
Alimony payments are another consideration to factor into your decision regarding when you divorce. If the paperwork is finalized by the end of the year, the person who pays the alimony will still enjoy the benefit of being able to deduct spousal support payments on taxes. It was taxable for the person receiving it, which was beneficial to everyone because the tax rate was lower than what the payor would have paid. The big change coming is that alimony isn’t deductible by the payor or taxable for the payee.
Another change is that children won’t be deductible on taxes for the 2018 tax season through the 2025 season. This is because the personal exemption amount is eliminated for these years. Still, children might qualify for the additional child tax credit.
The good news for Illinois residents is that it isn’t too late to start the process of ending your marriage now. There isn’t a waiting period in this state as long as one party has been a resident of the state for at least 90 days. If you realize that you need to take advance of the current laws, don’t delay your filing. Remember, your divorce needs to be finalized by the end of the year.