Unfortunately, ‘Tis the Season for Divorce
Couples are rushing to get divorces finalized before the end of 2018.
Starting January 1st, there will be a new tax overhaul that will eliminate a lucrative tax break when it comes to alimony.
A decades long practice will come to an end when it comes to taxing alimony payments. So those who pay alimony will no longer be able to take a federal income tax deduction on that alimony. Director of the H&R Block Tax Institute Gill Charney said, "The government decided to get out of the alimony business." The ex-spouse who pays alimony won't be able to deduct that expense unless the divorce settlement takes place before December 31st. So there are plenty of couples trying to end their marriage in 2018 so they can separate with the least amount of tax damage possible.
On the negative side, of course it's terrible that a couple is ending a marriage. On the plus side... this could be the most fun New Year's Eve ever!