By Harness WealthAdviser Insights — February 7, 2020

Divorce Law Updates for 2020

The Tax Cuts and Jobs Act was passed at the end of 2018 and included new tax rules that affected divorce proceedings, particularly regarding alimony payments and tax filing status.

Share

Kimberly Nelson, CFA®, CDFA, is an Adviser at Coastal Bridge Advisors, one of the many excellent financial advisory firms on the Harness Wealth platform. She has been working with high net worth divorces in the Los Angeles area for more than 15 years. Coastal Bridge ranks amongst the top 4% of Registered Investment Advisers in the country as measured by assets under management (AUM), one of their many distinctions as a firm.

For all divorces filed on January 1, 2019 and onward, several new tax rules based on the Tax Cuts and Jobs Act (TCJA) passed at the end of 2018, now apply. Shared wisdom from friends or family who may have divorced a few years ago (while well-intentioned) may no longer be relevant.

Updates: Tax on Support

Updates: Tax Filing Status

During this emotional and often confusing time, couples should recognize that it is in both parties’ interest to know these various rules and work together accordingly to achieve the best possible arrangement. Consult experienced legal, financial, and tax advisers who have shepherded clients through these difficult issues. With the right planning, you can have the confidence of knowing that a complicated situation was dealt with in a way that made the most of your financial potential and will set you and your family up for future success.

Related articles:

Advisory services offered through Coastal Bridge Advisors, LLC (CBA). CBA is an SEC registered investment adviser and is not affiliated with Harness Wealth, LLC or Multiplier, Inc.

This article is provided for informational purposes, not as personal investment advice. There is no guarantee views and opinions expressed herein will come to pass.

This article contains information derived from third party sources. Although we believe these third party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.