Family law attorney Corri Fetman received a lot of publicity—much of it bad— when her all-female law firm ran the above cheeky advertisement to spur business. No, it’s not exactly unethical to encourage people to break up their families because there is better sex to be had, it’s just sleazy. (Funny! But sleazy….) Now, however, marital-dissolution lawyers are engaged in due diligence and meeting the ethical the of communication by telling their clients–particularly the wealthy ones— that if they want out, the clock is running.
One of the features in the new Republican tax law that the news media didn’t tell you about while it was trying to get you angry about it will eliminate the tax break for alimony payments. I didn’t even know that alimony was deductible, but you can bet Donald Trump did. Now, they won’t be if they are finalized after December 31, 2018.
Under the new law, Americans who finalize or modify divorce agreements in 2019 or later will no longer be able to deduct alimony payments from their taxes. The IRS says that about 600,000 taxpayers claim the deduction each year, and the cost to the Treasury is not chump change. The current, soon-to-be-ended system allows those paying alimony or so-called unallocated support, which are payments meant to help a divorcing spouse and children at the same time, to deduct all of it from their income before calculating what they owe in taxes.
I’d like to know why alimony was ever deductible. Deductions are supposed to encourage conduct and expenditures that benefit society, like buying a home (domestic stability, the economy) and giving to charity. Why would the government want to encourage divorces, and reward the guy who is paying alimony because he cheated on his wife and got nailed in the settlement? Why should I be paying part of Donald Trump’s/ Tom Cruise’s/ George Clooney’s/ Harrison Ford’s alimony payments?
Analysts suggest that the absence of the deduction may lower divorce rates slightly. Good.
I have to find out what else is in that tax law, which was generally irresponsible, since it adds to the national debt. Apparently there are some silver linings…