Rockland County divorce attorney Paul Goldhamer, Esq. is a co-founder of the New York & New Jersey law firm of Kantrowitz, Goldhamer & Graifman. Mr. Goldhamer was chosen as a “Super Lawyer” in 2014 by Superlawyers.com for his work in estate law and matrimonial law. He also maintains a packed schedule of charity work, teaching and guest appearances on radio and TV.
From Paul Goldhamer, Esq.:
Child support has always been nondeductible and remains so. But, clients must look closely at the tax benefits of different assets & how they affect the deal. Couples should weigh receiving the marital home as verse taking a portion of a spouse’s retirement plan. Often, the parent who has custody of the children wants the house. But, the tax changes adversely affect New York & New Jersey divorcing couples, because the deduction for high state and local taxes has been capped. This may make the family home less valuable in the long run. Spouses who get the retirement account will not be able to draw down on it until age 59½. But, they will have created a stronger retirement future. By not taking the house, you can avoid property taxes. This must be studied on a case by case basis.
Paying for a child’s education is also important. Given the changes in the tax laws, 529 college savings plans can be used for private school. They were limited to postsecondary and college education.
But, will there be enough money to pay for college? 529 plans require special thoughts. Who gets credit for the 529 as a college contribution? Does it cause a credit against Child Support? The new tax law is complex and the negotiation on the college contribution are challenging.
At KGG, we have been helping families plan their futures for 4 ½ decades.