Pittsburgh Family Law Attorney Brian Vertz Discusses Tax Reform, Divorce, Alimony Deductions

February 07, 2018 | In the News

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In a recent Politico article, Pollock Begg Komar Glasser & Vertz LLC Partner and Pittsburgh family law attorney Brian C. Vertz discusses how President Trump’s new tax law may increase divorces with the alimony deductibility changes taking effect under the 2019 Tax Cuts and Jobs Act.

For those in the highest income bracket, the cost of alimony payments in divorce settlements will significantly be reduced. The law also eliminates the tax alimony recipients are required to pay on the money. Some industry watchers are now predicting a surge in divorces as those couples already separated or considering attempt to finalize everything by Dec. 31, 2018, before the changes take effect.

The alimony tax deduction has existed for 76 years. It creates a tax incentive for spouses to pay alimony. In many cases, there is not enough property or liquidity to allow both spouses to achieve financial stability after divorce. Alimony provides a source of income to refinance a mortgage after divorce, or get a college education, or simply close the household budget gap until a spouse can earn more through working. Alimony helps divorce cases to settle by motivating spouses to pay alimony to those who need it.

With a practice concentration in matrimonial tax issues, Vertz is adept at explaining technical aspects of tax laws to clients and professionals alike. His book, “Frumkes & Vertz on Divorce Taxation,” is a nationally distributed legal treatise on tax strategy for family lawyers. He has been invited to speak to the Pennsylvania Conference of State Trial Judges and writes legal education materials on business valuation, divorce taxation, executive compensation, and settlement agreements. Vertz also publishes an insightful legal blog, FamilyLawTaxAlert.com, which provides current analysis on tax and financial issues for divorce lawyers and their clients.

Learn more about Vertz’s knowledge of business valuation, taxation in complex divorce cases, and the various tax implications intertwined with marital law by visiting his team bio page. To contact Vertz for an interview, call the office directly (412) 471-9000 or call Ideality Communications at (724) 359-5225.

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