In this recent New York Times reprint, Chief Wealth Strategist Alvina Lo shares her insights.
- With the rule on alimony and deductions changed, so must the strategy of couples parting ways.
- In particular, couples going through a divorce should re-examine their tax strategy, as well as their cash flow and spending needs.
- Wealthier families should consult with their tax advisors to fully understand the tax implications of the new law.
Strip out the acrimony and emotion, and divorce can be boiled down to a business negotiation. Harsh as that may sound — there are often children stuck in the middle — when a couple gets down to completing their split, the numbers matter: assets, support, time allotted with children.
Divorce negotiations are never easy, and they became more complicated this year. The Republican lawmakers’ sweeping overhaul of the tax code changed many of the calculations that factor into the logistics of divorce. Many Americans learned this year how tax changes affected their return, with some people owing more than they had expected. But others are realizing a slew of unforeseen consequences.
Reprinted with permission.Download Article