IMPORTANT FEDERAL ALIMONY/SPOUSAL MAINTENANCE TAX CHANGES: For divorce and separation agreements or divorces finalized on or after January 1, 2019, the 2017 tax reforms eliminate the tax deduction for the payer of alimony/spousal maintenance and the requirement of the receiver to report these payments as income.
Stacey H. Langenbahn, J.D., Attorney-Mediator
If you are thinking about divorce and you are a parent with a child who will be in school in the fall, you owe it to your kids to call Detente now for our exclusive “May to August” divorce. And if you intend to ask for spousal support, it is imperative to start your divorce immediately so you can finalize it in 2018 before the new tax reforms come into effect on January 1, 2019 when alimony/spousal support will no longer be tax deductible.
Many divorcing parents strongly believe a house itself represents stability and security for the children. They are afraid to sell the house for fear of adding to the children's upheaval. These feelings are valid and understandable. However, parents who allow their fears and emotions about the child's welfare to surpass common sense and sound financial planning as drivers of decision making about the house often find it is their undoing.