The Internal Revenue Service (IRS) is not a government agency that people are excited to deal with. Add this agency to the already difficult emotional landscape that comes with the parties navigating a divorce and things could get interesting.
There has been a change to the United States tax system with the implementation of the Tax Cuts and Jobs Act (TCJA). This law resulted in major tax reform. The TCJA essentially doubled the standardized deduction rate and gave business owners new rules to follow when filing returns.
Anyone considering a divorce or in the early phases of the divorce process will likely finalize the divorce in 2019. The date of the final divorce agreement is important as it will determine which tax laws apply. Those that finalize their divorce in 2019 will likely be subject to the new tax regime.
There may be numerous crucial aspects to address during the end of a marriage, one of which being whether spousal support payments will be required. Addressing this aspect could be crucial, as these payments can have a substantial impact on one's taxes. However, the laws regulating how support payments are taxed may change if a proposed tax reform bill in the U.S. Congress becomes law. Individuals who are considering divorce may find it advisable to speak with a family law attorney in Michigan for guidance on how this might affect them.
There are numerous aspects involved in the process of divorce. Property division or child custody are often significant issues during this stressful life event, but there are other areas that may require attention. In Michigan and elsewhere, spousal support is a key aspect in many divorces and can potentially have a significant impact on the financial future of everyone involved.