When there are a lot of assets, such as in high net worth marriages, that need to be decided on in divorce, it’s important to remember the tax repercussions that can follow those decisions. Making this even more overwhelming is the fact that tax laws will be changing in 2019.
When retirement accounts, large pieces of property, and alimony are at stake, divorce gets tricky. Making these decisions trickier for both lawyers and feuding couples, it’s the fact that big changes are coming at the end of 2018.
A number of tax law changes were implemented at the end of 2017 but a big disruption won’t happen until Jan. 1, 2019. The biggest direct impact is on alimony. Alimony will no longer be a tax deduction for the person paying it, and it will no longer have to be claimed as income by the person receiving it.
At the beginning of 2018 it was predicted that this would cause a big rush on divorces, due to the fact that people would try to get the divorce in before the year changed. Turns out, that big rush hasn’t quite happened.
According to divorce attorney Malcolm Taub, of Davidoff Hutcher & Citron in New York, “It is a drastic change, but it seems like people are living with it.”
While the determination of the actual dollar value of alimony is relatively easy, the biggest…
