If you’re seeking a divorce at the beginning of 2020, you are not alone. Research has shown that January is by far the most popular month for couples to divorce in America, with cases typically surging by 25-30% once the holiday season is over.
However, if you are seeking a divorce in 2020, there are some key facts you need to know. Changing divorce laws and emerging trends mean that getting divorced may not be as simple as it once seemed. Here are the five essential facts you need to know about divorce cases in 2020.
1. Divorce Cases in 2020: Changes to Tax Law
One of the major ways that divorces are changing in 2020 concerns tax law updates. At the beginning of last year, a new law came into place that removed tax deductibility for alimony payments.
In addition to alimony no longer be tax-deductible for the paying spouse, it is also no longer taxable for the receiving spouse.
This means that an ex-partner that is paying alimony in 2020 will not be able to get a tax deduction for this, increasing their costs significantly. It also means that someone receiving alimony payments will have less money to spare in 2020.
2. Healthcare Costs Are Now a Key Consideration
With healthcare costs spiraling across America, it should come as no surprise that health insurance is now factored into the price of divorce in 2020.
The healthcare needs of a spouse and their dependents are increasingly being factored into the calculation of alimony payments.
A divorced spouse is not entitled to coverage under their former partner’s healthcare plan. This means that they face significant costs, particularly if they are on a lower income.
Couples seeking a divorce should have a strong knowledge of how healthcare costs will affect alimony payments.
3. Divorce is Getting More Expensive
Unfortunately, most divorces are getting more expensive. The average cost of a divorce in the US is now a staggering $15,000, an all-time-high that is continuing to rise.
However, this cost is not spread evenly across the country. Divorce lawyers are typically more expensive in wealthy metropolitan areas such as New York, San Francisco, Boston, and Los Angeles.
In smaller, more rural areas, the price of divorce is lower.
4. Real Estate Laws Will Affect Your Divorce
Given that real estate is often the largest asset held by a couple, any changes in real estate law have a strong impact on divorce proceedings.
Recent changes to the law now mean that real estate taxes are no longer deductible.
This means that it is more expensive for many divorced couples to continue living under the same roof.
The result is that you may find it wiser to sell-up quickly so that you can both walk away with more cash.
5. A Divorce Can Help Your Child at College
As the cost of putting a kid through college rises, couples are looking at ways to reduce the burden.
One tactic that has emerged in recent years is that couples who are heading for divorce will make sure to finalize that divorce prior to their child’s college application process.
This is because it will place the child’s family in a lower income bracket, thus maximizing the number of loans and grants they are eligible for. This is one surprising benefit for divorce that many couples don’t realize.
While divorce cases are getting more complicated, this doesn’t mean you should be deterred. To learn more about obtaining a smooth and simple divorce in 2020, contact our expert family law professionals for all of the information and guidance you could need.