Month: September 2018

Qualified Domestic Relations Order

Wisconsin AlimonyDividing retirement assets such as 401K’s and pensions as part of a divorce settlement require a Qualified Domestic Relations Order (QDRO). A Qualified Domestic Relations Order is a legal document that divides the assets in a retirement plan between spouses.

Because the employer’s retirement fund often requires the plan holder to initiate the starting date of the benefits, a QDRO should address when a non-plan-owning spouse can begin receiving benefits. The QDRO should also contain clear provisions for the retirement funds in the event the plan holder dies, whether before distributions begin or after – particularly important if the plan holder named a beneficiary other than the ex-spouse. Of upmost importance is to make sure that a QDRO is in place prior to finalizing your divorce.

Contact A Qualified Domestic Relations Order Lawyer

There the many financial considerations when divorcing such as who gets the family home, the financial support of children, retirement assets and more. If you have questions regarding a Qualified Domestic Relations Order in Wisconsin, marital property division or other family law questions, contact Probst Law Offices for personal and confidential help at 414-210-3135.

Finalizing Your Divorce in 2018 May Save You Money

Divorce in 2018A reminder to those considering divorce…new tax laws will impact how spousal maintenance is treated beginning January 1, 2019, which can make a difference in how much money remains in the the family unit.

Current Tax Laws and Spousal Maintenance

Spouses who pay alimony that finalize their divorce on or before December 31, 2018 will be able to deduct the alimony paid from their taxes while the presumably lower earning recipient claims the payments as taxable income. For top earners, this arrangement often translates into a whole lot of money saved in taxes for the benefit of the family unit.

Spousal Maintenance Tax Treatment Changes with the New Year

However, for couples finalizing their divorce on or after January 1, 2019, alimony will not be deductible by the payor or taxable to the recipient. Although at first glance, many think a recipient might favor such a change, the shift will likely result in less alimony being paid when a payor loses the incentive of a reduced tax burden.

How Does the Law Apply When Couples are Already Divorced?

The law permits ex-spouses to modify an earlier divorce agreement to adopt the new rule after it goes into effect in 2019, however if a pre-2019 divorce is not modified, your ‘grandfathered-in’  allowing the payer to continue to deduct payments made and the recipient to pay the taxes on what is received. Seek the help of an experienced divorce lawyer to see if a modification is right for your situation.

The timing of your divorce can impact the amount of spousal maintenance you will receive. If you have questions regarding Wisconsin divorce or spousal maintenance, contact Probst Law Offices for a free, half-hour initial consultation with an experienced Milwaukee and Waukesha attorney for child support and spousal maintenance.  Call (414) 210-3135 or send us an email.