Friday, November 10, 2017

Trump Tax Plan Could Influence Future Divorces

Alimony payment often fails to line up between spouses in the United States. That is, one individual reports it, while the other does not. The Trump tax plan may eliminate deduction of alimony, which means it could completely disappear from future settlements. This would not only effect standard of livings for spouses and children but also could discourage couples from filing for divorce. A reduction in the divorce rate is not necessarily a good thing.

Headline: Under Trump’s tax plan, divorces are about to get a lot nastier

There’s no longer a silver lining to paying spousal support.

President Trump’s tax plan unveiled this week will abolish tax deductions on alimony. This won’t impact people who have already agreed on their payment amounts but — assuming the GOP tax bill is passed by Congress — this new arrangement will be in effect for divorce decrees on Jan. 1, 2018 and thereafter. “This will create a total reevaluation of divorce cases,” said Malcolm Taub, partner and co-chair of the divorce and family law practice group at Davidoff Hutcher & Citron LLP. “It’s major.”



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