A tax court judge recently ruled that paying a former spouse's student loan could be claimed as an alimony tax deduction. The decision is considered to be quite profound since the noose has been tightened on alimony deductions as per the federal Tax Cuts and Jobs Act (TCJA), which also affects tax deductions. As it currently stands, alimony payments are deductible for the payor and taxable for the payee, but that will all change this Jan. 1 and will also affect divorcing Illinois couples.
Many issues arise when a couple in Illinois or elsewhere around the country decide to end a marriage. Regardless of socio-economic status, every couple must deal with the issue of property division and "who gets what" of the marital assets. However, those involved in a high asset divorce must deal with those issues on a large scale.
You went through the divorce process in Illinois. When all was said and done, you were happy with how it worked out and were just ready to move on. Well, months or years down the line you have realized that your divorce agreement really is not working for you. Is there anything you can do about it? Is your final agreement really final?
According to researchers, more and more older Americans are deciding to move beyond an unsatisfying marriage by filing for divorce. For those Illinois spouses who are considering such a move, it's important to make wise decisions that are in line with one's long-term financial goals. That includes alimony, which can be something of a risk in later life.
Illinois parents would probably agree that making sure the needs of their children are met is a top priority. While child support payments may seem like a simple thing, there is room for error. A simple mix-up can have lasting consequences for a parent, as one father recently learned the hard way.
The first year or two after a divorce can be tricky for everyone involved, but kids are placed in an especially awkward position. For Illinois families struggling to settle into a new child custody routine, a new school year can be a challenge. These tips can help make this time of transition a bit easier for all parties.