Brandon Family Law Center, LLC
Call for help
813-438-7119

Tax reform law could affect divorce negotiations

When Florida couples are considering a divorce, they may not realize that federal tax law changes could also impact the end of their marriage. At the end of 2017, the Tax Cuts and Jobs Act was passed, best-known for its provisions on corporate and individual tax rates. However, there are also several provisions of the law that will affect how people deal with taxes during and after a divorce, especially after clauses related to alimony and spousal support go into effect at the beginning of 2019.

Over the years, spousal support has been handled in a divorce in a way that tends to benefit both parties. The payer, who is generally the higher earner, can deduct alimony payments from his or her taxable income, providing a significant benefit for generous spousal support when tax time rolls around. At the same time, the recipient pays taxes on the income in his or her lower tax bracket. The recipient could also dedicate alimony funds to retirement accounts with special tax status, like IRAs. This procedure will remain the same for those who complete their divorces or even separation agreements before the end of 2018.

For those who conclude their agreements in 2019 or later, however, the tax outlook will be very different. Alimony will neither be deductible nor included as income. While this may seem a boon to the recipient, it is likely to result in lower overall alimony awards.

As a result, many people are looking to complete a settlement agreement before the end of 2018 in order to lock in the current tax situation. A family law attorney can work with a divorcing spouse to negotiate a comprehensive agreement on other issues as well, including property division.

No Comments

Leave a comment
Comment Information
Email Us For a Response

Contact Us For A Consultation

No matter what's your family's need, Brandon Family Law Center has the knowledge and experience to help you. To schedule an initial consultation to discuss your case with the experienced and caring divorce and family lawyers at Brandon Family Law Center, email or call us at 813-438-7119.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location:

Brandon Family Law Center, LLC

Brandon Office
1038 E. Brandon Blvd.
Brandon, FL 33511

Phone: 813-438-7119
Fax: 813-654-6830
Map & Directions

Tampa Office
601 N. Ashley Dr.
Suite 1100
Tampa, FL 36602

Map & Directions

Proudly associated with

  • NAELA | National Academy of Elder Law Attorneys, Inc. Member
  • Florida Adoption Council
  • IACP | International Academy Of Collaborative Professionals
  • BNI
  • The Greater Riverview Chamber of Commerce