Schedule A Free Consultation
Law Office of Katherine Kraus PLLC
623-239-0015

Best Attorney
in Peoria!!!

Avvo Client Review

5 Stars

How TCJA could make divorce more expensive

Getting a divorce has always been a very expensive process. Due to the passage of the Tax Cuts and Jobs Act, however, soon-to-be exes in Arizona may find that divorce will be even more expensive if they separate after 2018.

There are number of provisions in the TCJA that will apply to divorcing couples. These provisions directly affect alimony and child support.

Spouses whose divorce agreements will be signed on or after Jan. 1, 2019, should be aware that alimony will no longer have any income tax consequences. Instead, it will be treated as a simple property transfer. Divorcees who have to pay alimony will no longer be able to deduct the amount they pay from their taxable income. On the other hand, those who receive alimony will not have to include those payments as part of their taxable income.

The tax law changes make alimony more of a disadvantage for divorcees who are payers. For the recipients of alimony, cash flow will be higher. However, it is believed that alimony amounts will be lower as the payers will have to take into account the loss of the deduction.

A family law attorney may help a client obtain favorable divorce settlement terms. The lawyer could evaluate the factors of a divorce and tell the client which legal strategies to pursue to resolve disputes regarding alimony and child support. Counsel could also be provided regarding how the passage of the TCJA might affect a particular divorce case and whether it is advisable to wait until 2019 to finalize the separation.

No Comments

Leave a comment
Comment Information

Avvo Client Review

5 Stars

Schedule A Free Consultation Today!

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

Our Peoria Location

9059 West Lake Pleasant Parkway Suite C-300
Peoria, AZ 85382

Phone: 623-239-0015
Fax: 623-572-2586
Peoria Law Office Map

Back To Top