New Tax Law Significantly Impacts Couples Going Through Divorce

FAYETTEVILLE, N.C., Jan. 3, 2018 /PRNewswire/ -- The new tax reform act impacts almost everyone; however, it contains some significant provisions that impact families going through divorce in particular, says Mediator Michael Wayland with Christian Divorce Services. The new law will impact how couples, mediators, lawyers, attorneys and judges look at the financial issues involved in divorce and will shape settlement agreements and court orders.

To show how the new tax law will impact divorce settlements, Wayland has released a new white paper, The Impact of Tax Reform on Divorce, available at http://www.ChristianDivorceServices.com/Pages/articles.aspx, under NEW: The Impact of Tax Reform on Divorce.

The white paper covers important changes impacting settlements, including:

- Impact of the elimination of penalty for married filing separately
- Head of household filing status is preferable to single, up to a point
- Impact of the elimination of the deduction for individual exemptions for the taxpayer, the spouse, and their dependents
- Impact of the deductible medical expense drops from in excess of 10% to just 7.5% of adjusted gross income (AGI)
- Alimony or spousal support will not have a tax impact for either party effective January 1, 2019
- Impact of the elimination of the deductibility of home equity mortgage interest through 2025 if the home equity loan is taken after December 15, 2017 
-Renegotiation of prior divorces

Overall, the new tax reform act has a significant impact on couples who will be going through divorce. Although it does not change completed divorces, it will significantly impact future divorces. The settlements created by couples with their divorce mediator or the decisions handed down by judges just got a little bit more complicated.

For the full white paper with greater detail on how the issues impact divorce settlement visit: http://www.christiandivorceservices.com/Pages/articles.aspx  and click on NEW: The Impact of Tax Reform on Divorce. To discuss the issues directly with Wayland, or to learn more about Christian Divorce Services, please see the contact information below.

About Michael Wayland

Michael Wayland is Assistant Professor of Business at Methodist University in Fayetteville, North Carolina where he teaches classes in Personal Finance, Business Strategy and Business Management. In addition, Wayland is a family and divorce mediator for Christian Divorce Services.

Contact:

Michael Wayland 
Assistant professor of Business 
Methodist University 
and 
Mediator 
Christian Divorce Services 
Phone: 614.774.3766 
Email: [email protected]

About Us

Christian Divorce Services (CDS) is a non-denominational Christian organization based in Fayetteville, NC with offices in most states. CDS does not advocate divorce but when attempts at reconciliation have failed, CDS seeks to assist family's going through the divorce process to achieve an out of court settlement without the destructive impact of litigation while protecting the children from the divorce and post-divorce pitfalls that most families fall into.

Christian Divorce Services 
6117 Castlebrooke Lane, 
Linden NC 28356 
Phone: 614-774-3766 
www.ChristianDivorceServices.com 
www.Methodist.edu

SOURCE Christian Divorce Services

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