The Tax Cuts and Jobs Act of 2017 (TCJA) turned 18 months old on June 22. With the enactment of the TCJA came significant and some unexpected changes to the Tax Code. The changes impacted tax brackets, the corporate tax rate, standard deductions, personal exemptions, mortgage and home equity loan interest deductions, the alternative minimum tax and other significant sections of the Tax Code. The results have created mixed responses from taxpayers, accountants, tax lawyers and other financial professionals. As only limited guidance has been promulgated, uncertainly remains with a variety of these new code provisions.

While many taxpayers began to feel both the benefits and detriments of the TCJA during the 2018 calendar year and certainly at the time of the filing of their 2018 returns, a large majority of the divorcing population are just beginning to truly encounter the significant effects of this legislation. The main reason, among others, is the loss of the ability to shift income through the inclusion and deduction of alimony, spousal support and alimony pendente lite payments.