Davidson v. Comm’r, T.C. Memo. 2018-38, 2018 WL 1611811 (2018) (a) Facts: The parties were divorced by an Arkansas court, and the divorce decree divided the parties’ debt. Within a few days after the decree was entered the judge sent the parties a letter, which stated: When I made…
Dear Carolyn, I have received spousal alimony since a 2003 court order until death. I would like to get an increase because of the economy. My ex-spouse receives three times my social security and retirement. His home is paid for and he owes three motor vehicles. His social security and…
Dear Carolyn, I work and make a good income. During our marriage, my wife worked for a while, but stopped when we had children. She has and maintains a CPA license. We have a 15-year-old with some discipline problems and ADHD. We are divorcing, and I think she should go…
Dear Carolyn, My ex is receiving alimony, which I obviously do not want to pay. She has a son, by another marriage, who is a heroin addict. My ex-wife began dating shortly after our divorce, and she seems quite entrenched with this guy. He stays over at my ex’s on…
Dear Carolyn, My ex is all over Facebook about what she did with the kids during Spring Break. She apparently took some young woman with her to babysit so she could spend more time with her boyfriend on the Florida beach. She posted my little boy “buck naked” on the…
Dear Carolyn, My wife had an affair, and because I wanted to save the marriage for the children, I forgave her. That was about ten years ago. Now, it is really not working, and I want out. The last child has finished high school. She spends too much money and…
Forget it! Forget about the alimony deduction for all new decrees or instruments post-2019. (See Part I for modification of pre-2019 alimony orders and agreement, as modification has a separate set of rules.) The deduction is gone absent a congressional miracle. That means on December 31, 2018, or before you…
Previously, we examined the paragraph and subparagraphs defining “divorce or separation instruments.” Now let’s take a look at which sections of TCJA incorporate these subparagraphs. Sections incorporating all three subparagraphs of the definition of divorce or separation instrument Post-2018. The two sections of TCJA that adopt all three subparagraphs of…
The repeal of the alimony tax sections for the inclusion of income and deduction has an ancillary impact on other divorce tax issues. The effective date for all ancillary issues discussed in this article is December 31, 2018, the same as the alimony repeal. These December 31, 2018, changes shall…
Divorce was hard enough, and now alimony tax reform. Do you feel good or bad about alimony? No matter your answer, this alimony tax reform revolutionizes the divorce arena, and you need to know how it may affect you and your clients. Judges need to know how it might affect…