The 2017 Tax Cuts and Jobs Act created significant ramifications in the divorce context, particularly on the income tax front.This article discusses seven areas impacted by the current tax laws–including taxation of trust income and other important considerations. Issues including taxation of alimony payments, the suspension of the personal exemption and the miscellaneous itemized deduction, as well as possible higher valuations for closely held businesses, are also covered.
ACTEC Fellow and President of Family Wealth for Wilmington Trust’s Eastern U.S. Region, Sharon Klein, shares her insights on this ACTEC podcast about protecting assets before marriage and after a divorce. Listen to podcast This podcast is for general information only and is not intended as an offer or solicitation for the sale of any financial product, service or other professional advice. Professional advice always requires consideration of individual circumstances.
This article reprint was recently published in the July issue of Trusts & Estates magazine.The 2017 Tax Cuts and Jobs Act (the Tax Act) altered the way that income from certain trusts is taxed in the event of a divorce.Practitioners should carefully consider the tax impact of every trust created during a marriage in the event the parties get divorced in the future.