The new “Tax Cuts and Jobs Act” eliminates the alimony payment deduction for divorces finalized after December 31, 2018. How will that impact divorcing spouses?
Tax and Divorce
The GOP’s new “Tax Cuts and Jobs Act” has some good news and some bad news for separated or divorced individuals. Here’s how it could affect you – for better or for worse.
Spousal support, or alimony, is taxable to the recipient and tax deductible to the payer. Child support is not taxable or tax deductible. In other words, alimony is really paid out of your gross income but child support is paid out of your net income. The parties can negotiate their agreement however they want, so […]
First and foremost, assets divided in divorce are tax free. However, each party may incur specific tax implications after they’re already divided up. Some of the most common ones are you have to look at in terms of the house and the house benefits, who gets the house. If one party is assigned the house […]
If a stay-at-home spouse signed joint tax returns during the marriage and it turned out the moneyed spouse was under reporting income or making fraudulent claims, can the innocent spouse be protected from prosecution?
Where there are multiple properties, some owned by one spouse before marriage, some income properties and some family residences or vacation homes, how will these be divided on divorce? Are they all subject to division or are some exempt?
If you are one of the increasing number of married couples going through divorce after 50, making finances your top priority and setting financial goals could help you protect your future.
How could my income taxes be affected by my divorce?
It’s the same for everybody. Take a deep breath and realize that a divorce is a marathon, not a sprint. That’s one of the things that I tell almost all of my clients. Particularly for business owners, getting organized with your business bookkeeping is something that has caused problems in many business valuation cases. I’ve […]
A family lawyer from New Mexico discusses taxation, business, and financial issues in divorce situations.