New Orleans Law Blog

Louisiana residents who are at least 50 years old and are thinking about getting a divorce may be concerned about how it may affect their retirement. However, there are steps they can take that can mitigate how much harm a divorce may have on their financial security for retirement.

Before they make any financial decisions, older divorcing adults should be aware of the tax implications. It is important that they know what they have in pretax and post-tax assets and how those assets are likely to be taxed throughout the years.

Many people who are contemplating getting married in Louisiana wonder if they should sign a prenuptial agreement. The purpose for getting a prenup is to determine what each party will get in the event of a divorce. Without a prenuptial agreement, property is divided according to state law.

Many people choose to get prenuptial agreements for financial reasons, especially if they know that their partner has a lot of debt or excessive spending habits. A prenup can help save time and money in the future if one party files for divorce because both parties already know how assets will be divided before they meet with attorneys or spend time in court.

When you celebrated your birthday at age 21, festivities might have included your first "legal" drink of alcohol. In fact, many families consider it a special birthday custom for parents to imbibe with a son or daughter who has come of age. While there is nothing inherently wrong with that idea, it can be problematic for those who are prone toward addiction.  

Alcohol consumption can lead to all sorts of problems if you struggle with substance abuse or suffer a lapse in judgment when it comes time to decide whether or not to get behind the wheel of a car to drive after you've been drinking. You could not only be placing your own and other people's safety at risk, you can also wind up facing drunk driving charges. If alcohol issues have thrown your life off-course, you'll be glad to know there are strong support networks in place to help you get back on track. 

Louisiana couples who are getting a divorce will need to be aware of the effects property division and other financial elements will have on their taxes. They should also know that for divorces that are finalized after 2018, tax reform means that there will be some changes compared to previous years.

One of the biggest changes concerns alimony. For decades, alimony has been taxable to the recipient and tax-deductible for the payer. This will change for divorces that are finalized in 2019. It is unclear what effect this will also have on prenuptial agreements that address the issue of alimony including those written with the assumption that alimony would be taxed in the traditional way. The tax reforms will also affect how businesses can be valued, and people should make sure that this valuation is made to their benefit.