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Why did the new tax law impact alimony?

If you are one of the many California residents who is contemplating a divorce, you will no doubt be interested to understand how the new tax law might impact you and your divorce settlement. If you might be responsible for paying spousal support to your partner, whether your divorce is finalized this year or next can make a big difference in what you might end up agreeing to. If you might be eligible to receive alimony, the timing of your divorce agreement may make a big difference in the amount of money you actually receive from these payments.

401Ks and QDROs

California residents who get divorced will want to understand the different things that may impact the financial outcome of this major life event for them. During the discussions about how to split a couple's assets and debts, the subject of retirement accounts may well arise. In marriages where one person's 401K account is identified as a major asset up for being split between both parties, special care will be required in order to avoid some potential taxes and penalties.

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