The 2017 tax law negatively affects divorce settlement options. I have practiced law for 35 years. For the first time in those 35 years, beginning on divorces granted after December 31, 2017, alimony will no longer be taxed deductible.
This is a major blow to creative settlements that allow the federal government, the income transfer and tax brackets, to add money to the settlement pot at no expense to the divorcing couple. If you think you might be able to take advantage of the deduction of alimony, be aware that your divorce must be finalized by December 31, 2018. For those of you who will have some level of cooperation between you and your spouse can reasonably expect to be able to finalize the divorce by the end of 2018. This is especially true in divorces using the Collaborative Divorce process.
If you're already represented by counsel talk to your attorney for more information or contact my office at 817-285-2855 for a consultation to know more.