Category: Alimony

Settle Your Divorce Before the Alimony Tax Deduction Is Repealed

April 01, 2018 | Alimony, Blog, Complex Financial Issues, Divorce, Tax Issues

Icon for author Brian Vertz Brian Vertz

Spouses who are separated should act promptly to settle their divorce cases, before changes in the federal tax law make it more difficult next year. Back in December 2017, the U.S. Congress passed a law that makes sweeping changes in federal income tax. Many personal tax deductions have been repealed, including the right to deduct alimony from taxable income. The repeal of the alimony tax deduction affects divorce settlements and […]

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Double Dip Prohibited in Divorce: IRA Edition

April 19, 2013 | Alimony, Blog, Court Decisions, Divorce, Equitable Distribution

Icon for author Brian Vertz Brian Vertz

A recurring issue in divorce litigation is the treatment of marital assets that generate income, such as pensions, rental real estate and businesses. Pennsylvania case law establishes clearly that these assets can be divided as property in equitable distribution or counted as income for alimony, but not both. A recent decision published by Adams County Judge Robert G. Bigham applies this law and logic to IRA distributions, in Sealander v. […]

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Health Insurance “Tail” Doesn’t Wag the Divorce “Dog”

March 18, 2013 | Alimony, Blog, Court Decisions, Divorce

Icon for author Brian Vertz Brian Vertz

The recent non-precedential decision in Deslam v. Deslam, No. 1237 WDA 2012 (March 15, 2013) presented the Superior Court with the dilemma of Ellen Deslam in the nadir of her third marriage, just 36 months from her Medicare eligibility date, after a five year union. Apparently the divorce raised no serious dispute over the division of marital property; the Superior Court’s opinion focused only on the issuance of a divorce […]

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IRS Disqualifies Tax Deduction for Alimony Paid Until Child Finishes College

December 02, 2012 | Alimony, Blog, Court Decisions, Tax Issues

Icon for author Brian Vertz Brian Vertz

In Doolittle v. Commissioner, T.C. Summary Opinion 2012-103 (2012), a NON-precedential opinion of the U.S. Tax Court, the taxpayer settled his divorce by entering into a marital settlement agreement, in which he agreed to pay $900 per month alimony until December 31, 2010. The alimony was intended to “help with college costs,” according to the 2003 settlement agreement. The child of the taxpayer and  his former wife would be 23 years […]

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