What Can The Well-Heeled Learn From Trump Jr’s Divorce
Following twelve wonder years of wedded bliss — and five kids, Vanessa filed for divorce. Vanessa file for an “uncontested divorce,” which means the soon-to-be-former Ms. Trump, Jr. Isn’t anticipating a lawsuit. Rather, their respective attorneys will meet in a cushy office and sign a mutually agreeable arrangement which will involve child custody, child support, splitting of the assets and alimony.
Odds are the couple has a prenuptial agreement in place. Odds are better than there is a ‘spousal maintenance’ clause included. Without a prenup, the courts will determine the value of spousal maintenance by going to standard formulas which reflect the parties’ income. The formula allows for a peak of $3,066.00 a month for spousal maintenance — aka alimony.
Regardless, ex-spouses never trip over themselves with excitement about paying alimony. Customarily, tax laws provided a soft landing as the giving spouse tax deduction while the taking spouse has been forced to claim those funds as income.
Don Jr. Will be disappointed to find out everything changes under his father’s tax plan. As America gets tired of winning, the First Son will lose a precious tax write-off.
According to Business Insider, beginning January 1, 2019, alimony payments are no longer deductible. It’s going to get pretty expensive for junior. Vanessa’s attorney isn’t an idiot. He knows Mueller’s indictments and discovery demands are on their way. He knows the wise maneuver is for Vanessa to legitimately put as much daylight between herself and the in-laws as possible — quickly. Filing a Complaint for Divorce has a guillotine-like power like few maneuvers. Once the complaint is filed, the matrimonial timer stops. Income and assets are no long jointly acquired, and spousal privilege doesn’t prohibit one from speaking against the other.
Vanessa and her legal team could drag out any contract agreements until after January 1. Then, she’ll avoid any duty to incorporate alimony into her income. Another option: Vanessa may use the looming tax curfew as clout to press Junior into a swifter — and more bountiful — arrangement.
Either way, it’s a win-win for Team Vanessa.