People in North Carolina may be wise to consider the effects their divorce could have on tax planning. This is especially true for people with significant assets, particularly when one spouse is the primary breadwinner. Spousal support taxation will be handled differently for people who finalize their divorces after Dec. 31, 2018, due to changes included in the Tax Cuts and Jobs Act passed in late 2017.
Many people getting a divorce in North Carolina are aware that the process can present some challenges during the transition to a life without a significant other. There's no getting around the fact that ending a marriage is often time-consuming and sometimes costly. However, some individuals remain unaware of the possible implications associated with certain financial mistakes that tend to be made during a divorce.
For people in North Carolina and across the United States, upcoming changes in tax law could make divorce even more financially complicated. In December 2017, the Tax Cuts and Jobs Act was signed into law by President Donald Trump. While other aspects of the tax reform garnered a great deal of media attention, less discussion focused on the law's effect on couples who decide to divorce.