Let's face it. Divorce isn't something people plan for. It's not uncommon for an individual's life to be sent into a tailspin when they're caught off guard by divorce papers. The uncertainty can lead many to make quick decisions in an effort to preserve their assets. While the choices an individual makes may seem to make sense on the surface, they may carry unintended consequences later.
If you talk to someone who's not a millennial, then they're likely able to provide you with a laundry list of ways that individuals of that generation are changing the way things are done for the worse. They may be surprised to learn, though, that the one thing that they seem to be doing right is not getting divorced at the same rates that previous generations have.
After years of marriage and raising your family, you and your spouse made plans to retire in Florida. It's a popular location for post-career living. Perhaps, you weren't very far into that journey when you realized your marriage was no longer sustainable. You'd had problems when your kids were growing up, but you decided it was more important at the time to provide a stable environment for them, so you overlooked the problem issues and persevered.
Once the Tax Cuts and Jobs Act (TCJA) fully goes into effect on Jan. 1, 2019, any spouse paying alimony will no longer be able to deduct it on their taxes as they have in the past. Recipient spouses will also no longer have to claim the monies that they receive as income. A recent case brought in front of the tax court on Sept. 5 perhaps set a new precedent for what's considered as alimony.
Although a divorce rate in excess of 50 percent would motivate many to sign a prenuptial agreement before they marry to protect their assets, many are "hopeless romantics" who take their chances without them. Even if they have one, it may not protect future businesses that are set up after the couple marries.