Divorce can be difficult for anyone who is going through it. However, Missouri residents and others will need to be aware of key recent tax changes that may play a role in a divorce settlement. Perhaps the most well-known change is that alimony will no longer be a tax deduction for the payer. This could mean that those who are asked to make such payments will pay less than in previous years.
Usually, when Missouri parents get a divorce, they either share physical custody or one has physical custody while the other has visitation rights. There are actually two kinds of custody. Legal custody refers to which parent has the right to decide what religion the child will be raised in, what kind of medical care the child will get and other major issues.
Couples in Missouri may hesitate to create a prenuptial agreement because they are worried about how their families will react or even that the agreement could increase the chance they will get a divorce. They might also worry about revealing their own financial problems such as bankruptcy. However, a prenup can build communication between a couple along with important protections if they do divorce.
People in Missouri who are getting a divorce may want to take steps to prepare for the divorce itself and for life after the divorce. A divorce has essentially three phases. First, there is the process of filling out paperwork and filing. Next, there is the discovery phase in which both spouses reveal their finances. Finally, there is a settlement.
People in Missouri considering divorce may wish to expedite their plans in order to finalize before the end of the year. This is because there are some changes to federal tax laws that will go into effect at the beginning of 2019. Some of those changes could have a serious impact on the future finances of people who end their marriages. For people who want to ensure they are governed current tax laws during their split, finalizing during 2018 may be a priority.