Category: Complex Financial Issues

Settle Your Divorce Before the Alimony Tax Deduction Is Repealed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 Many personal tax deductions have been repealed, including the right to deduct alimony from taxable income.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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Keeping Taxes Low During Separation and Divorce

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

Icon for author Dan Glasser Dan Glasser

Divorcing couples often face disastrous tax consequences because they go from filing taxes jointly to married filing separately, which creates the highest tax burden for both spouses. But, there is an alternative. Under certain circumstances, parents with children can file as head of household. To qualify, a single or legally separated person must maintain a household for more than half of the taxable year which is the principal residence of […]

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Divorced Spouses Must Update Beneficiary Designations

Divorced spouses who do not update their beneficiary designations are taking an unnecessary risk, as illustrated by a case now pending before the U.S. Supreme Court.  In Sveen v. Melin, No. 16-1432 (cert. granted December 8, 2017), the Met Life insurance company was “caught in the middle” when its policyholder Mark Sveen died in 2011.  He had purchased his life insurance policy and designated his then-wife, Kaye Melin, as his […]

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What Are the Tax Filing Options for Separated Couples?

February 15, 2018 | Blog, Complex Financial Issues, Divorce, Tax Issues

Icon for author Ashley Majorsky Ashley Majorsky

Tax time can be a stressful situation for any individual. However, for separated couples comes additional considerations and unavoidable tax planning. The ultimate decision which must be made is whether the separated parties choose to file as married filing jointly, married filing separately, or have the added option of filing head of household. However, the decision regarding filing status cannot be made without properly weighing the advantages and disadvantages of […]

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