Locus, Minimizing Taxes In Divorce Without The Alimony Deduction

Locus describes how recent laws have made balancing family dynamics while going through a divorce even more difficult. According to Locus, before 2019, a key divorce planning strategy for over 70 years was the alimony deduction, which allowed “divorcing couples to shift taxable income from the breadwinning spouse in a high tax bracket to the spouse earning less in a lower tax bracket.” Thus, it provided an opportunity for families to save on their total tax bill and leave more money for the two households combined. However, for recent divorces that have been finalized after 2018, alimony payments “are no longer deductible by the payor nor taxable to the recipient at the federal level.”

Download the full article by clicking Locus, Minimizing Taxes In Divorce Without The Alimony Deduction.

Posted by Jessica Zhang, Associate Editor, Wealth Strategies Journal.

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