In the United States v. Gilmore, the Supreme Court has dealt with the issue of the deductibility of expenses incurred in a divorce case.  At Gilmore, Husband found that the legal fees incurred in using Wifes in common ownership in his various businesses were deductible for federal income tax purposes.  The court finally established the following test: At White v. Commissioner, the seventh circle has been invited to deal with a similar subject.  In White, the husband and wife entered into an agreement which was then included in the parties` divorce decree. The agreement provided in paragraph 5 that the spouse of the spouse would pay „liked in gross“ as follows: (a) US$180,000 in 72 monthly tranches of US$2,500, which are not achievable by the death or remarriage of one of the parties; and b) $2,250 per month until the death [of the woman], or the payment of 240 of these payments. The agreement also provided, in paragraph 6, that „all payments made to the wife under paragraph 5 would be deductible from the woman`s gross income and deducted from [the husband`s] gross income to the extent permitted by those laws or statutes.“  However, the law is not retroactive to the agreements or judgments that preceded the new law. This means that all agreements reached on December 31, 2018 or earlier – or court decisions setting support obligations – remain under the control under previous rules.
In this case, legal analysis of how the deductions apply to guarantee payments should be legally analyzed. Parties that are covered by the pre-TCJA rules may maintain these rules or be bound by the new TCJA rules if they wish. Voluntary payments, such as amounts paid without a court decision before a final divorce decision, are not considered a termination (p.B Milbourn v. Comm`r, T.C Memo 2015-13, 1.usa.gov/1pGTvDk). Payments to a third party to the former spouse, such as health insurance premiums to cover the former spouse, may be deductible provided all other conditions are met. Despite the best of intentions, when couples say, „I do it,“ more than a few will end up saying, „Not me.“ In addition to the emotional issues related to divorce, there are also tax and financial considerations.