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Tax Implications of Divorce After Tax Reform: Alimony, Property Divisions, Divorce Modifications, Child Credits

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, August 22, 2019

Recorded event now available

This course will explore planning opportunities for divorcees after tax reform. Most practitioners are aware of the dramatic changes to alimony. This significant change will impact other areas of divorce planning. Our panel of experts will discuss dividing property, separating retirement accounts, and modifying divorce agreements after tax reform.

Description

Alimony is no longer deductible by the payee nor included in the income of the recipient for divorce agreements dated after Dec. 31, 2018. The tax act also created a new child credit, abolished exemptions, and raised the unified credit to an unprecedented $11.4 million.

With the estate exemption so high, taxpayers aren't creating estate plans, leaving all assets vulnerable in divorce. Exemptions are no longer a negotiating tool, but there is a new child credit. These changes shed a different light on divorce planning.

As before, tax practitioners need to decide the most beneficial ways to divide assets, including appreciating property, retirement assets, and the tax attributes for children. These recommendations will have long-term financial consequences for the divorced taxpayer.

Listen as our panel of experts offers advice for divorcing taxpayers, including the tax considerations of property divisions, asset protection and alimony after tax reform.

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Outline

  1. Tax Reform Changes – TCJA
    1. Suspension of Itemized Deductions
    2. Basis Increase
    3. Alimony
    4. Child Support and Related Issues
    5. Head of Household
    6. Impact on Premarital Agreements
  2. Property Division
    1. Retirement Assets
    2. Trust Planning
  3. Wealth Transfer Planning and Divorce

Benefits

The panel will review these and other important issues:

  • Alimony considerations after tax reform
  • Dividing appreciating property
  • Separating retirement plans and QDROs
  • Division of tax attributes for children
  • Divorce agreement modifications

Faculty

Dernovshek, Amanda
Amanda J. Dernovshek
Atty
Foster Swift Collins & Smith

Ms. Dernovshek is a member of the firm’s Business and Tax Practice Group and practices in the Lansing office...  |  Read More

Robinson, Sarah
Sarah J. Robinson
Partner
McDermott Will & Emery

Ms. Robinson provides legal counsel on all aspects of estate and wealth transfer planning. She advises high-net-worth...  |  Read More