How Will the New Tax Law Affect Couples Progressing Through a Divorce?
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By: Haleigh Chastain
Member, American Journal of Trial Advocacy
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act that provided permanent tax breaks to corporations, temporarily cut the tax rates for individuals, and repealed the Affordable Care Act’s individual mandate.[i] There is no dispute that the new tax law will impact all Americans.[ii] With tax season quickly approaching, the question facing all tax filers is whether the new law will affect them positively or negatively. The news media has focused on corporate taxes and individual rate cuts, but one of the biggest changes brought about during this presidency involves how a spouse, responsible for paying alimony, and a spouse who receives alimony, will file his or her taxes. Alimony, also known as spousal maintenance, is awarded when one spouse of a divorcing couple, earns more than the other.[iii] The payments are typically awarded as a lump sum and paid over a period of several years.[iv] The payments are to help offset the cost of the lower-earning spouse to comfortably live on their own.[v] Continue reading “How Will the New Tax Law Affect Couples Progressing Through a Divorce?”

