Whether or not to keep the house may be one of the greatest decisions you need to make during your divorce. Think of it this way, that house was purchased under different circumstances: for two adults and now there will be one; with greater household income and now there will be less; when you had someone helping with the upkeep and now you will need to pay for more services. It usually does not make good financial sense to keep that house. Your new financial situation will indicate new appropriate housing.
For those who seem willing to jeopardize their future financial stability for the sake of keeping the children in the same house, neighborhood and schools, I would point out that it is not in your children's best interest to have you in financial peril and with all of the stress that comes with it. Further, if things were different, the marriage was in tact, life was wonderful, and you had the opportunity to move to a bigger, nicer, newer home, you wouldn't hesitate to move those kids to a new home, new neighborhood and new school. And you would feel realy good about it. So, re-examine this more objectively and make the decision that is in your, and your family's, best all-around financial interest.
If the decision to move to new and different housing seems difficult, work through it with your therapist. I also encourage you to have the children speak with a child specialist to discuss all the changes to which they must adapt. Divorce is difficult, but doable, and there is a future to look forward to. You may soon find yourself grateful for the new surroundings and living environment as key to your new life post-divorce.
05/21/2018Dependent Children and Tax Benefits
The conversation regarding which parent should claim the children as dependents has changed dramatically since the recent tax reform, effective January 2018, eliminated the personal exemption. Yes, that $4,050 (in 2017) tax exemption per child is gone. Parents will not even get that exemption for themselves. This is causing extensive confusion among attorneys and clients alike. The Parenting Plan template has not been revised to reflect this and still contains an entire section dedicated to which...
12/28/2017Tax Reform Effects Upon divorce
The most significant tax reform in thirty years was signed into law December 22. With barely a week to understand how it impacts all open and future divorce cases, it became effective January 1, 2018, unless otherwise noted. Many of the provisions have sunset dates, upon which rules will revert to pre-2018, unless extended. Alimony, beginning January 1, 2019, will not be tax deductible for payer, nor taxable to the recipient. Modified orders, after that same effective date, will adhere to the...
11/09/2017Tax Overhaul Targets Alimony
Content of the Tax Cuts and Jobs Act (TCJA) was revealed last week and, as it now stands, alimony discussions will change dramatically. If approved in its current state, on this issue, going forward as of January 1, 2018, no alimony will be tax deductible for the payer, nor taxable to the recipient. This includes all alimony modifications made after January 1. All standing alimony orders will retain their current tax status for payer and recipient. The TCJA is the most sweeping tax reform proposed...