Arizona couples who divorce in 2019 or later will be operating under new tax rules when it comes to alimony. Under the Tax Cuts and Jobs Acts of 2017, alimony that is paid as part of a divorce agreement will no longer be tax deductible. Meanwhile, alimony payments will no longer be considered taxable income. This is the exact opposite of the way alimony has been taxed for the past 76 years.
When people in Arizona get a divorce, they may wonder how this could change their plans for their children's college education. A study by Ameritrade found that two-thirds of couples do not have a financial plan in case of divorce or death.
One of the unfortunate outcomes of an Arizona divorce is that one or both of the spouses may be less financially stable afterward. As a result, couples are increasingly looking for more financial security in the divorce process in addition to more collaborative solutions to property division.
Some marriages in Arizona may start with each person being on equal footing. Others may begin in a more traditional manner, where the husband is in charge of finances and earning money while the wife stays home with the children or has a job that pays less money. According to researchers in Sweden, if there is a change in the career trajectory of the wife in the latter scenario that leads to her earning as much or more money than her husband, that marriage could be more likely to end in divorce than one in which both people were equal from the start.
For Arizona parents, being a custodial parent has advantages and disadvantages. The custodial parent is generally the parent the child lives with most of the time.