Simply put, if you and your spouse have been contemplating a divorce for the past few years (or more!) and if you suspect that one of you will be entitled to alimony payments after the divorce, it may be time to visit a divorce lawyer. The Federal Tax Cuts and Jobs Act of 2017 (TCIA) makes 2018 a pivotal year for divorces that include an alimony component. Simply put, if you and your spouse have been contemplating a divorce for the past few years (or more!) and if you suspect that one of you will be entitled to alimony payments after the divorce, it may be time to visit a divorce lawyer. The Federal Tax Cuts and Jobs Act of 2017 (TCIA) makes 2018 a pivotal year for divorces that include an alimony component.
If the marital settlement agreement or final judgments goes through before December 31, 2018, alimony payments will still have a chance to be tax deductible to the paying spouse. Under the new law, the receiving spouse will not be taxed on alimony payments as income beginning January 2, 2019. With the elimination of tax deductions for traditional alimony, divorcing couples may decide to opt for lump sum property settlements, rather than monthly payments.
The clock is ticking so let the negotiations begin! . The year will be half through before we know it and divorces often take six months to finalize. 2018 may be the best year to divorce depending on the circumstances. If you have questions, contact me at 386 257 1222 to schedule a consultation.
