WRKO>Audio & Video on Demand>>Jim Tankersley (NY Times, Divorce)

Jim Tankersley (NY Times, Divorce)

Jul 12, 2018|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Join our brand new text club by texting the word battery to 635660. Send your first and last name and get involved today you're listening to the financial exchange radio network. This segment of the financial exchanges brought to part by easy combing your one stop shop for all your plumbing and heating needs. They specialize in repairing your faulty equipment not replacing it so called easy plumbing today at 781. 8621190. That's 781. 8621190. Or visit the monoline easy plumbing MA dot com. Easy calling we can fix it mass master license number 10183. Getting divorced is expensive. No matter how you slice it they're getting divorced in. 2018. Might be a better option for you than getting divorced in year 2019 we're joined by Jim Tankersley. From the New York Times to help explain that equation I Jim welcome to the show. We're glad to so. I'll bite why is it better to get divorced from a financial perspective in 2018 is opposed to Tony nineteen. Well it that the answer is the new tax law that wrote president trump signed into law in December and is politically how it changes the treatment of Alamo. So off until the end of this year if you enter into a divorce agreement you can for basically the consideration of that agreement. Deduct alimony from your taxes. But if you enter into an agreement after the end of the year you no longer can deduct it and that catching a lot of speculation. Yahoo! with regularly so can you give us some examples as to how this would impact. It it seems like it's for primarily and be targeting wealthier families but just in general what's the financial impact to. Well there's it's great question there's sort of two different pockets of people that impacts one assist people who have to change some payment to make sure it. That essentially the same amount of money. Changes here and there would it would espouse. Was going to give a certain amount of out before tax dollars to another spell out and they need to beat this amount of money. Then there you can just change to pay the taxes okay you did receiving spouses get paid the taxes so calm the paying spells. Gives. We have gives more money before but in the under the new law it's going to be oh you mean if you less money I gotta pay the taxes before right. Before it to the US down. That's pretty straight ports to really just an accounting shift yes it does that interest is in. It is couples where they haven't differential. Tax. So we're whipped husband. Earns a lot more than a white. And pays her alimony after a divorce it before based could be government was subsidizing it. And that couple's divorce by allowing them to deduct the alimony to go lower tax rate of of this ex wife. But now or. They rule the accident at the higher rate and so the question will be a cool beer at the law that what was essentially free money from the government. And that the orchestra. What happens if you go in and you want to amend an old divorce decree because. He had divorced five years ago but your financial circumstances changed significantly. Since he got divorced and you happen to do that after January 1 of 2019. Then you're gonna have to deal with the fact that your alimony is story deductible. So this becomes. A bit above for use on existing agreements the last the parties are welcome to work out that that changing alimony treatment because. Wanted an agreement as amended it loses that grand fathering that it would pass out. Child support is not tax deductible is it. It's not a Buddhist doesn't doesn't really affected. At all although there is that this sort of mixed support is that some states have. Aware you can patent it up on und. Specified support that they covered book spouse in children. And this changes to disability of that business as well along with alimony and so. Again that that that would be aware it was shorter actually effect. What are you hearing from divorce attorney says there are rushed to get these things dealt with by the end of the year or is it. Business as usual. Well. They're all expecting a huge scored thirty starting the year about Russia they're ready huge crush in the fall. And I'm hardly anybody says you have to do Kenyan thing I was curious about getting a divorce but now I definitely wanna get one for tax reasons. It's more like people were considering you know there already into the process of getting a divorce. And now they're considering though we need to get that done by the end the year from which to tax treatment so divorced players are talking about yeah we're we're dug in your client about this. Financial planners are tucked into their clients about this. And on their posts. You know. Urging them to get things done before the deadline. If if this would make a difference for them and they're also thinking about creative ways to get around it in the event that don't get that apparently that. Jim thank you for your time I had read about this anywhere else so we you he scooped me thank you might put it they Arabic Jim Tankersley New York Times.