New Tax Bill Could Affect Prenuptual Agreements

Prenups often contain provisions about how much a partner would pay in alimony, also known as spousal support. The agreements can be thrown out if judges deem them unfair, signed too quickly or under duress. Now the tax revamp offers another avenue for challenges because courts will likely have to consider how the law has changed since the contracts were created. Starting in 2019, payers will be no longer be able to deduct their alimony payments.

Read the full article at https://www.bloomberg.com/news/articles/2018-05-23/prenups-under-attack-as-tax-law-boosts-cost-of-alimony-payments

Steve Trojan is a CPA in Colorado and a Certified Divorce Financial Analyst. He owns Flatiron Advisors Tax and Accounting and also has the website Smarter Divorce Planning.

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