Strip out the resentment and raw 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 tax calculations that factor into the logistics of divorce.
Many Americans learned this year how divorce and the new tax changes affected their return, with some people owing more than they had expected. But others are realizing a slew of unforeseen consequences.
The revised tax code has brought similar surprises to couples going through a divorce, to the point where lawyers and financial advisers are suggesting their wealthier clients bring accountants into the mix to lay out the tax implications of age-old strategies.
If you or someone else is separated or going through a divorce… seek out professional assistance for any tax consequences before you break out that bottle of champagne!