As Southeastern Wisconsin Real Estate agents with a niche in divorce, we are extremely guarded advice outside the realm of real estate....we do not and we believe should not....advise clients about legal or accounting/tax matters...that is not our expertise and if we are asked...we always, always, always suggest that the "bride and/or groom" as we call them....go to the highest and best source...a lawyer or CPA who can advise them as to how a change in the law...a decision of the judge ...can mean a change for their own situation. We are not the highest and best source for information in these areas...no real estate agent is unless they are also degreed in accounting and the law.
Here is some "Law for thought" that deserves consideration as it concerns the tax law and what may matter to individuals going thru a divorce or who anticipate being in that situation.
The new tax law has several changes that may effect individuals:
There is no tax exemption for children, however the tax credit for children under 17 is doubled to $2000/child.
Many MORE people are now eligible for the Child tax credit with
the phase out limit now being $200,000 annually.
Any alimony mandated for decrees signed in 2018 fall under what
are now the "old" alimony rules...alimony is deductible by the payor
and taxable income to the payee.
Beginning in 2019, alimony is neither deductible or reportable. It
will then be likened to child support...not visible on a tax return.
The government WINS ! This new law will increase the taxes
paid by divorced couples. Typically, the former spouse with
the higher income pays the alimony. How this changes the
financial picture for each former couple is a question best
raised with a CPA.
Over a decade, this is expected to increase government revenue by
8.3 Billion dollars.
We provide this information to inform...and urge divorcing couples
to have their individual situtations reviewed by an accountant...and not
make dangerous assumptions that may make a difference in their financial picture.
This has been an informative post brought to you by the only certified Real Estate Divorce Specialists in Wisconsin ...and Mentors of the DREAM Course in Real Estate for agents who wish to pursue this niche, Sally K. & David L. Hanson, Real Estate Brokers with Keller Willliams Realty, honored to be of service in southeastern Wisconsin.