Why Trump’s tax plan may spur more divorces
Republicans may pride themselves on upholding family values, but their new tax law could soon lead to a surge in married couples calling it quits.
Lawyers are counseling couples considering divorce to do it this year — before a 76-year-old deduction for alimony payments is wiped out in 2019 under the Tax Cuts and Jobs Act.
“Now’s not the time to wait,” said Mary Vidas, a lawyer in Philadelphia and former chair of the American Bar Association’s section on family law. “If you’re going to get a divorce, get it now.”
Potential divorcees have all of 2018 to use the alimony deduction as a bargaining chip in their negotiations with estranged spouses.
The deduction substantially reduces the cost of alimony payments — for people in the highest income-tax bracket, it means every dollar they pay to support a former spouse really costs them a little more than 60 cents.
The change is an example of how the tax law is having far-reaching consequences beyond its corporate and individual tax cuts, in some cases by quietly overturning decades of tax policy.
Read more at Politico.