Recent changes to tax laws will impact divorces, and people facing the prospect of the end of their marriage would be wise to plan well around these changes. If a divorce is final after the end of 2018, anyone paying alimony will no longer be able to deduct these payments for tax purposes. The person receiving the alimony will not have to pay taxes on it.

This means there is now an urgency to complete divorces before the end of the year. However, hurrying through an important a complex process like a divorce can lead to agreements that are not truly beneficial and sustainable. Due to these changes in the law, these are some who point out that couples may have less incentive to work together to reach reasonable agreements. Ohio readers know alimony can sometimes be a bargaining point, but it is more difficult to do so now due to the Tax Cuts and Jobs Act.

Alimony is not the only aspect of divorce affected by these changes. Because of the changes in tax laws, it can increase the value of a small business, which can therefore impact divorce negotiations. There is a lot at stake, particularly for high-asset couples. 

Divorce is a complex process, and recent tax changes could make it even more difficult for Ohio couples to come to certain agreements through negotiations. It may be especially important for people facing the prospect of divorce to look past temporary emotions and seek a final agreement that will be beneficial in the future. It is helpful to consider the long-term impact of decisions before moving forward with an agreement.