Tax Implications of Divorce After Tax Reform: Alimony, Property Divisions, Divorce Modifications, Child Credits

Alimony is no longer deductible by the payee nor included in the income of the recipient for divorce agreements dated after Dec. 31, 2018. The tax act also created a new child credit, abolished exemptions, and raised the unified credit to an unprecedented $11.4 million.

With the estate exemption so high, taxpayers aren't creating estate plans, leaving all assets vulnerable in divorce. Exemptions are no longer a negotiating tool, but there is a new child credit. These changes shed a different light on divorce planning.

As before, tax practitioners need to decide the most beneficial ways to divide assets, including appreciating property, retirement assets, and the tax attributes for children. These recommendations will have long-term financial consequences for the divorced taxpayer.

Listen as our panel of experts offers advice for divorcing taxpayers, including the tax considerations of property divisions, asset protection and alimony after tax reform.

1. Tax Reform Changes – TCJA
   1. Suspension of Itemized Deductions
   2. Basis Increase
   3. Alimony
   4. Child Support and Related Issues
   5. Head of Household
   6. Impact on Premarital Agreements
2. Property Division
   1. Retirement Assets
   2. Trust Planning
3. Wealth Transfer Planning and Divorce

The panel will review these and other important issues:

• Alimony considerations after tax reform
• Dividing appreciating property
• Separating retirement plans and QDROs
• Division of tax attributes for children
• Divorce agreement modifications

Learning Objectives

After completing this course, you will be able to:

• Determine the effects of tax reform on alimony
• Recognize planning opportunities for property divisions
• Identify elements of tax reform affecting divorce planning
• Ascertain appropriate strategies for separating retirement assets

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).