Settling finances can be one of the most difficult and trying aspects of divorce. It’s complex and confusing and couples rarely see eye-to-eye. Thanks to the new Tax Cuts and Jobs Act, it’ll be even tougher.
Some areas that may impact divorcing couples will be:
- alimony will no longer be deductible for the payer, and taxes don’t need to be paid on it by the recipient
- More generous child tax credit rules
- a new $500 credit for dependents who are not eligible for child tax credit
- the standard personal and dependent exemptions have been eliminated for 2018-2025, so this tax season is the last time you will be able to claim it
These articles will help you understand more about how the Tax Cuts and Jobs Act will affect your finances going forward:
https://www.marketwatch.com/story/have-kids-5-ways-the-new-tax-law-affects-you-2018-02-21
We can help you with questions about your specific situation. Call today to schedule a consultation: 480-777-5500