As we have previously covered here, The Tax Cuts & Jobs Act of 2017 Includes a Divorce “Penalty” for divorces that take place after December 31, 2018 if they involve alimony. Prior to this act, and up until December 31, 2018, alimony was tax deductible to the payor and taxable income to the recipient, which allowed for a shifting of taxable income to a lower tax bracket. If an agreement is entered prior to the end of 2018, and this benefit is preserved, then it continues into future years, even if the amount is later modified. This has led many couples, already in the divorce process, to consider whether they want to work on finalizing their case prior to the end of 2018 to preserve this option. Because some states, like Massachusetts, have waiting periods for finalizing a divorce, this law change raised a question: Does the deadline of December 31, 2018 apply to the divorce being finalized, or just having a written agreement completed? The answer to this question in M
Read about mediation, collaborative law, and divorce in Massachusetts, with content from Skylark Law & Mediation PC, Gray Jay Endeavors LLC, and Dispute Resolution Training Associates.
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