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Will New Tax Laws Change the Rate of Divorce....We Vote No

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

   The buzz in divorce these days is about the change in the tax law...Yes this will....at least for now...have some impact on the finances of people who divorce.  John Divorce rings brokenWiley...an AR Member from Florida wrote a post explaining the new law and that he believes that this may have an impact on the rate of divorce.  Read his post by clicking here.  

   As many of you, we have had a niche in divorce in real estate for the past decade with hundreds of divorce related transactions closed. We also teach a one on one course to Real Estate agents across the country so that they can make this niche a prosperous part of their own realty practice.

   One of the largest reasons reasons for divorce is infidelity...married young and grew apart...for infidelitywhatever reason, found another person more attractive than their spouse.  Tax implications will not, we believe impact the "laws of attraction." Emotionally driven reasons for marital separation in our experience are not reasoned with by a calculation of financial loss..in fact...often by the expectation of a better life financially and emotionally with the new love interest is part of what fuels the desire for divorce. 

     Unrealistic expectations are another huge reason. expectationsThat the magic of the wedded bliss...showers and parties will continue after the "I do's" are said...with no effort to communicate...no examination of common goals. One partner imagining the two point three children and white picket fence.  the other dual careers in a downtown condo ...were never pre-marital discussions. 

     While it may sound shallow...changes in physical appearance...which often lead to infidelity can play a part in a decision to leave a relationship.  The "take for granted" she/he will love me for who I am if weight is gained, appearance neglectDivorce grown aparted...it won't matter......and yet...it can, and does.

        Inequality and "growing apart"...one put the other through school...or gave up on dreams to fulfill the dreams of the other to find that they were not headed in the same life direction. 

    We will not argue that there are some couples who stay together because "it's financially easier".  They have grown accustomed to the lifestyle not necessarily the "life with their spouse." In our observation, those couples lead separate lives emotionally...may well have very separate finances and it is a relationship of convenience...not influenced by a change in any law.

   Domestic abuse  We cannot forget abuse...whether it is physical or emotional...the result of ego or a substance addiction. What happens with tax laws will never impact the decision to leave an abusive relationship...nor should it. 

        Let's not forget that there are many influences in the decision to divorce...friends, familcalculatory....and the lawyer that will represent the Petitioner in the action. They have all heard the story of why...and perhaps in many cases encouraged divorce for the emotional well being of their friend/relative/client.  We cannot think of one of these primary influencing parties that would take out a calculator...suggest an accountant and encourage staying in the relationship.

      If you or anyone you know is divorcing in southeastern Wisconsin,  call Sally K. & David L. Hanson for all things real estate and divorce...certified, experienced and successful in having closed hundreds of divorce related transactions,  honored to be of service.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Working with two divorcing couples right now, Sally. Never easy, but fortunately I have clients who are very committed to me.

May 17, 2018 06:05 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Betting they did not examiine tax law before serving papers Nina Hollander . Committment to the process is the important part as well as knowing how to handle the communication.

May 17, 2018 06:09 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Sally... both have done what they need to with attorneys and financial planners... all is good.

May 17, 2018 06:12 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I totally agree with you Sally. Divorce is here to stay and tax laws will do little to change the numbers. There are many complicated reasons why marriages don't last - financial stress can certainly add to an already strained relationship - but it's not the only reason marriages fail. As you stated...the grass often looks greener...

May 17, 2018 07:12 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Sally,

We agree with you.  No amount of $$$ is worth days of strife and unhappiness.  It is what leads to disease in the long run. A

May 17, 2018 07:24 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Sally and David - many people will find a reason to explain a situation. There is usually another source.

May 17, 2018 09:48 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David I agree with you.  I don't think tax implications will even be a consideration most of the people contemplating a divorce.

May 17, 2018 03:16 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Most of the divorce sales I handle are amicable. I think peopele are quick to file and get it done.

May 17, 2018 08:04 PM
James Dray
Fathom Realty - Bentonville, AR

Morning Sally.

More fuel for the fire as I'm soaking up all of this for our next training session.

May 18, 2018 01:41 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope the tax law will not increase the number of divorces.

May 18, 2018 03:31 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I agree with you.  It would be nice if it did.  A marriage license test might make more of an impact.

May 18, 2018 04:18 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Another great post for a feature, Sally! I saw John's post and wondered myself if that will change the divorce rate. I'm with you - they likely don't find out about the monetary issues until it's too late!

I rely on your experience managing divorcing couples - you and David are the King & Queen of these transactions. Divorcing Wisconsin sellers are so fortunate to have you to guide them through this process.

Carol Williams - here's a great one to feature this week!

May 18, 2018 06:50 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Whatever the reason for choosing not to stay married Debe Maxwell, CRS ...the tax consequences won't deter the petition !

May 18, 2018 06:55 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Yes, once that decision is made, rarely do you ever see both parties turn back...one, maybe but, never both!

Happy Friday Hansons both!

May 18, 2018 07:18 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Sally K. & David L. Hanson when there is a serious reason for divorce, money is not a factor in the equation....

May 19, 2018 04:55 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Exactly Barbara Todaro have yet in hundreds of divorce cases to hsvr snyone weigh tac deductions  as part of a decision to end the relationship...a change in the law won't change that.

May 19, 2018 05:01 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I did not realize that alimony was no longer deductible for the person who pays it and not taxed as income for the recipient. Even Social Security is taxable (at a certain income level), and that's your own money they're giving back to you.

May 19, 2018 08:56 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Sally K. & David L. Hanson are speaking as experienced, trained and professional agents who are well known for their work with divorcing couples.

They have great relationships with Attorneys and Judges.

They have been a mentor to me as I transitioned into Divorce Real Estate.

I agree that emotions are the major drive when a couple approaches divorce. Those emotions are not easily tempered and many will go through with the divorce even if it means financial loss.

Thanks for the mention, I appreciate all you do.

May 22, 2018 08:11 AM