The Impact of Recent Tax Updates in Divorce Settlements

The 2018 Tax Cuts and Jobs Act dramatically effected divorce settlements effective January 1, 2019. Clients need more of an in-depth analysis of their needs and available cash flows before entering into settlement negotiations or presenting their case to a court.

The new tax law makes significant changes to the way that alimony payments are taxed, reducing tax savings by eliminating the deduction for alimony. The topic discusses the impact of the change and how to navigate through the settlement process.What You'll Learn:Child Tax Credit

• 2018 Pre and Post Reform Tax Rules
  
• Increase in Amount Credit

Changes in Tax Rates

• Single vs. Head of Household
  
• Head of Household and Dependency Deduction
  
• Investment Income Rates

Repeal of Alimony Deduction

• Effective Date
  
• Effect on Settlements
  
• Prenuptial Agreements

Other Tax Provisions

• Deductions
  
• Employee Business Expenses
  
• 199A Qualified Deduction