People in New Jersey who are supposed to pay child and spousal support may be concerned about how they will afford these payments and their cash flow. In some cases, it may be possible to lower spousal support payments by offering a spouse a larger share of the marital property. People may also consider the timing of filing for divorce. For example, they might want to delay filing if they anticipate a slow income year ahead to ensure that year will be included in salary calculations.
Typical issues that must be resolved during a divorce include child custody, child support, the division of property and alimony. The purpose of alimony, also known as spousal support, is to limit the economic impact on a spouse who is a non-wage earner or a lower-wage earner by providing financial support to that spouse.
Starting on January 1st, 2019, couples getting a divorce in New Jersey will have to be mindful of new rules regarding alimony and taxes if spousal support will be an issue. In a nutshell, payers will no longer be able to deduct their payments for tax purposes. Also, recipients will not have to report their spousal support payments as income. However, some smart planning may minimize financial concerns for couples not able to beat the clock and get their divorce in before the changes take effect.