As you decide to end your marriage, you may wonder if there is a “right” time to do so. Popular months for divorce tend to be January, August and March, reveals Forbes. But the reason may be due to emotions and not actual advantages.
It is better to base timing on finances, children’s needs, the presence of abuse and other factors. Here are a few things to consider as you make the decision of when to file for divorce.
Taxes for spousal support
As soon as 2018 is over, alimony tax laws will change. Currently, they allow payers to deduct payments, but require recipients to claim them as taxable income. In 2019, the spouse paying will not receive the tax break, but the spouse receiving the money will. Whether it is best to divorce now or wait depends on which side of the equation you think you will be on, as well as how much the payment will be.
However, the change can also affect retirement and asset distribution, so it is best to discuss your options with an accountant. The law does not apply to divorces that are already finalized, but it may be relevant in modifications of divorce orders.
A common way to divide the house, especially when neither spouse wants to retain it, is to sell it and split the proceeds. This can be a profitable solution if the housing market is strong. Otherwise, it may be beneficial for one of you to take the house and wait to sell it once the market improves.
Pennsylvania practices equitable distribution, meaning the court awards property according to what is fair instead of what is equal. Property not only includes assets, but also debt. If you are in a large amount of debt, it is usually best to take care of that before divorce because you can still be responsible for it afterward.
The most important factor in the timing of your divorce is personal preparation. When you have done the proper research, gathered all necessary evidence and planned for your future, you can turn any time into the right time to file.