As most are aware, the Tax Cuts and Jobs Act passed in December 2017, will become effective on January 1, 2019. While there will be a major impact on several different facets of tax law and reform, the Act will implement a major change in family law, specifically the divorce arena. Section 11051 of the Act will repeal the ability of the payer to deduct payments from their taxes and change how the recipient's alimony is taxed.
In the emotionally draining, stressful, and time-consuming process that is divorce, a relatively new option for couples may provide a more efficient, lower-cost way of navigating towards a settlement. Collaborative divorce is a process in which both parties to a divorce are still able to select their own attorneys, yet sign an agreement which avoids expensive litigation in court. This client-centered method focuses on gathering information to reach mutually beneficial results, rather than assigning blame. The cost savings may be especially prevalent for couples with more assets, but both attorneys and any individuals going through divorce can benefit from the process.