If you’ve been weighing divorce and have decided that 2019 is the year you move to your next chapter, there are a few new laws you should know about before you file.
Changes to Spousal Support
When sweeping federal tax reform became law in late 2017, it included a big change to the way spousal support would be considered, beginning January 1, 2019. In the past, the spouse providing support would get a tax deduction for the payments, and the spouse receiving support was required to report payments received, and pay taxes on those payments as if they were income.
This is no longer the case.
As of January 1, the spouse paying alimony will no longer receive a tax deduction, and the spouse receiving alimony will not need to pay taxes on what they receive.
Learn more about how this change in the law could impact your settlement agreement in 2019 through our resource, Understanding Spousal Support: The New Tax Bill Changes How Alimony is Taxed.
Your Pet Will Now be Treated More Like a Person
In California, as of January 1, 2019, your pet is no longer deemed “property” to be divided in a divorce settlement. A change in the law now grants your judge the power to assign sole or joint custody of a pet animal to the party they deem the best caregiver.
The best way to prevent having a judge step in to assign custody of your beloved pet is to come to a custodial agreement with your ex, on your own.
For advice on how to do that, and more information about the new law and how it will impact your divorce settlement, see our new resource, New CA Law in 2019: The Judge Can Now Decide Who Gets Fido
Mediation Just Got More Paperwork
In California, SB-954 now requires that lawyers working with clients on mediation must have the client sign a disclosure agreement regarding confidentiality of any conversations or communications related to the mediation, at the beginning of the mediation process.
Per the law, this now means that all communications between you and your attorney made in preparation for a mediation, or during a mediation, are confidential and cannot be disclosed or used (except in extremely limited circumstances), even if you later decide to sue your attorney for malpractice because of something that happens during the mediation – i.e. even though it’s your mediation, you cannot introduce documentation from the mediation in a court proceeding, because mediation conversations are all deemed confidential.
We hope you never find yourself in a position to sue your mediator. But this is a heads up that you will need to sign an additional document at the beginning of the mediation process that indicates you understand all mediation-related conversations are confidential and will not ever be admissible or subject to discovery or compelled disclosure in noncriminal proceedings.