The new federal tax code that may have significant impacts on divorcing spouses in Idaho beginning in 2019.  Under the old tax code, a spouse paying spousal support to the other spouse either while the divorce was pending or after the divorce, was able to deduct the payments on their taxes.  Typically, that was a positive for the paying spouse.  The spouse receiving the payments paid taxes on the payments, just like any other income they would receive. Typically, that was a negative for the receiving spouse. 

Under the new tax law, and beginning January 1, 2019, and continuing until the new tax laws are changed, the paying spouse will no longer be able to deduct their payments to the other spouse on their taxes.  That is likely a negative for the paying spouse.  The spouse receiving alimony will not have to count the payments as income for tax purposes.   That is likely a positive for the receiving spouse. 

The new rules currently only apply&

While the Supreme Court’s decision legalizing same-sex marriage established the law regarding marriage rights, many are wondering what that decision means for same-sex couples in areas of the law extending beyond marriage. The United States Supreme Court’s decision ruling that the Constitution provides same-sex couples the right to marry aligned with a prior Ninth Circuit decision striking down Idaho’s constitutional amendment restricting marriage. The Supreme Court decision impacted more than 1,000 areas of federal law that are related to marital status. This includes everything from bankruptcy filings and Medicare access to military spousal benefits and social security. In Idaho, both court rulings affect how same sex couples are impacted by Idaho divorce law including asset division and spousal support.

Regardless of whether you are in a domestic partnership or whether you have legally married your partner, there are a plethora of legal issues that same sex couples and their families face, both on the state and federal levels. The attorneys at Jones & Swartz can help individuals navigate these various issues including: complex community property laws; legal adoptions; child custody and visitation; name changes; alimony; property and asset division without marriage; and assessing the legal ramifications of informal property and custody agreements between partners. Regardless of what legal issues you and your family face, having an attorney helping to guide you through this ever changing and constantly developing area of the law can be greatly beneficial in helping you determine your current legal rights and how to go about accomplishing your goals.

Idaho is among a handful of states known as community property states. Because of its designation as a community property state, many believe that, in the unfortunate event that they go through a divorce, all of the property they own is divided equally between them and their soon-to-be ex-spouse. While that is the case with some couples' property, it does not unequivocally apply to each and every piece of property in the marriage.

Idaho law recognizes a distinction between marital property and separate property. In a divorce action, marital property is split between the spouses while separate property goes independently to the owning spouse. Generally, any property either spouse owned before the marriage is considered separate property. Separate property also usually consists of items a spouse receives as a gift or individually inherits, even if it is during the marriage. Additionally, if a spouse acquires new property during the marriage through the proceeds of her separate property, that property likely remains her sole possession. The property that does not fall into those three separate property categories is generally considered marital property; however, property can change designations during the marriage.

Despite the law identifying which property is marital property and which property is separate property, many divorcing couples continue to disagree as to what category some property falls into. It is important to have an attorney that can help a divorcing spouse navigate the sometimes-complicated community property laws. A diligent lawyer can help a spouse ensure that the division of property is fair, reasonable, and in accordance with the law. At Jones and Swartz, PLLC, we passionately advocate for our clients’ interests and our attorneys are there to answer questions about Idaho law every step of the way.