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    Jeffery Urbach

    “If your client wishes to have alimony be deductible/taxable, your must finalize their divorce by December 31. Schedule the trial to allow for entry of the Court order before 2019.”

    The black letter of the new law says divorces “executed “ prior to 12/31/18 may elect the “old “ Sec 71 rules or the new law. The Committee Reports and the lack of Regs beg the question of what “executed” means. Lawyers will argue, correctly, that in their world “executed” means all the parties have signed the document.

    It doesn’t mean that a final Judgement of Divorce (JOD) has been entered into the judicial system with a Judges signature.

    So, if a document is legally “executed” on , say, December 31, 2018, but, the final JOD wasn’t entered into until January 2019 , which tax rules apply?

    Personally, lacking any further guidance I’m advising relying on the black letter of the law and definition of “executed” in our state (NJ).

    Would love your thoughts.

    Jeffery D. Urbach, CFE, CVA, CPA/ABV/CFF
    Partner, Urbach & Avraham, CPAs, LLP, Edison, NJ

    Reply

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