Who will get the marital home is always an area of contention in divorce proceedings. And paying for the home is also a large consideration. Sometimes, the tax credits received from retaining the home comes into play in determining whether either party will retain it. In prior years, mortgage interest and property taxes were deductions available to the parties during the marriage. Beginning in 2019, the tax laws will change and reduce the deductibility of both property taxes and the amount of mortgage that qualifies for interest deductions. This effectively makes retention of the home more expensive with the loss of the deductions.
It is important to understand these issues when negotiating retention of a home in a divorce settlement. It is important to speak with a family law attorney to understand the new changes to the tax laws and the impact the new laws will have on your divorce proceeding. Should you require additional information on this topic, please feel free to contact Simpson Legal Group, LLC at (712) 256-9899.