Mike Bean, CPA and Certified Divorce Financial Analyst of Divorce Sense, LLC joins us to explain the new tax laws and how they will affect couples going through divorce. Chances are, you'll want to be grandfathered in so you have tax benefits that will no longer be available after Jan. 1, 2019. Listen and learn how to protect your future assets. Our Family Law Firm Family law is about helping individuals and families manage the emotional struggles of facing an uncertain future. It is about our legal team being human and sensitive and empathetic to this big change that is occurring in our clients’ lives. The Atlanta Divorce Law Group has been founded on a history of helping families through the most challenging times of their lives. This is really the niche in which our attorneys and staff at the Atlanta Divorce Law Group have become experts at. And since we take such a holistic approach in how we help a family get through a transition, we have been involved with all aspects of the family’s life as they deal with a crisis....(read more)
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The new tax laws that were enacted in 2018 will have a significant impact on alimony and spousal support deductions. Under the previous tax laws, alimony and spousal support payments were deductible by the paying spouse and counted as income for the receiving spouse. However, with the new tax laws, this has changed. Effective January 1, 2019, alimony or spousal support payments will no longer be deductible by the paying spouse, and they will no longer be considered income for the recipient. This change will have a substantial impact on divorcing couples who have significant incomes and substantial alimony or spousal support payments. For example, if a couple agreed to $5,000 in monthly alimony payments under the old tax laws, the paying spouse would have been able to deduct this amount on their tax return, reducing their taxable income. The receiving spouse would have paid taxes on the $5,000 in income they received. Under the new tax laws, the paying spouse would no longer be able to deduct the $5,000 in alimony payments on their tax return. Furthermore, the receiving spouse would no longer have to pay taxes on the $5,000 in income they received. While this may sound beneficial for the receiving spouse, it may ultimately result in lower alimony or spousal support payments. With the ability to deduct alimony payments gone, paying spouses may be less willing to agree to significant alimony or spousal support payments. Additionally, the new tax laws may also impact property division in divorces. In divorces with significant assets, property may be divided in a way that takes into account the tax consequences of transferring certain assets, such as retirement accounts. With the new tax laws, this may become more difficult and may result in unfair property division. Another important point to note is the transition period in place for those who divorce prior to January 1, 2019 but have existing alimony or spousal support agreements. These existing agreements will be grandfathered in under the old tax laws, meaning the paying spouse will still be able to deduct the payments on their tax return, and the receiving spouse will still have to pay taxes on the income received. In conclusion, the new tax laws will have a far-reaching impact on divorcing couples and their financial arrangements. As the new tax laws are still relatively new, it is important for anyone going through a divorce to consult with a financial advisor and competent legal counsel to fully understand the implications of the new tax laws and how they will impact their financial situation. https://inflationprotection.org/alimony-and-spousal-support-deductions-under-the-influence-of-new-tax-laws/?feed_id=84393&_unique_id=642bb06b6cc32 #Inflation #Retirement #GoldIRA #Wealth #Investing #atlantadivorce #divorceandtaxlaws #georgiafamilylaw #newdivorcetaxlaws #newtaxlaws #taxanddivorce #taxlaws #taxesanddivorce #ytccon #SpousalIRA #atlantadivorce #divorceandtaxlaws #georgiafamilylaw #newdivorcetaxlaws #newtaxlaws #taxanddivorce #taxlaws #taxesanddivorce #ytccon
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