Thoughts from the FACP Vice President Elaine Silver:
Bottom-line advice…being collaborative, throughout the process, is a win-win for everybody. If alimony is on the table, and one spouse’s income is significantly higher than the others, best advice is to finish the divorce before 12/31/18 to preserve the alimony deduction. Only way to get that done is through Collaborative Process divorce.
Courtesy of the Washington Post:
WASHINGTON — For the wealthiest Americans, there may never be a better time to get divorced.
A change in the new Republican tax law will eliminate a tax break for alimony payments that are finalized after Dec. 31, prompting financial planners and lawyers to warn wealthy clients that if they have been contemplating filing for divorce, they had better act fast.
Under the law, Americans who finalize or modify divorce agreements in 2019 or later will no longer be able to deduct alimony payments from their taxes. Agreements signed before the end of the year will still qualify for the annual deduction — a distinction with large financial implications for couples where one partner earns substantially more per year than the other.
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