Creative divorce settlements can help you maximize your income. As of midnight December 31, 2018, spousal support payments are no longer considered taxable income for any new divorce decrees. Any decrees signed prior to this date, including modifications, are grandfathered into the new tax law
There are specific rules to follow which can become complex depending on your individual situation. On top of all of this, the Tax Cuts & Jobs Act, TCJA, has created the most sweeping changes to the tax code since 1986. The following are some general guidelines that should help you navigate your tax situation this coming year.
During this discovery phase is when I most often determine if a spouse is trying to hide assets. Hiding assets during a divorce has major implications on both proper estate division & spousal maintenance. Additionally, if the assets are income-producing, the spouse receiving support may receive a lesser amount than what he(she) is entitled to.