June 01, 2018 Substantive Law

The TCJA and Business Valuations

By Karen Platt

Reprinted with permission from Section of Family Law Newsletter, May 2018. ©2018 by the American Bar Association. Reprinted with permission. All rights reserved. This information or any or portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.

For most family law practitioners, our attention around the 2017 Tax Cuts and Jobs Act (TCJA) has been focused on issues regarding the non-deductibility of spousal support for orders issued and agreements entered into after December 31, 2018. However, the TCJA has a much broader reach than just the new alimony rules. For example, there are changes to estate, gift and generation skipping tax rules that may be important in the negotiation and drafting of prenuptial agreements. For us on the Marital Property Committee, our attention has been focused on the fact that the TCJA will almost certainly have an impact on business valuations as well and, therefore, a potential impact on our practice. We hope that this article will help flag issues of which the family law practitioner should be mindful when encountering business valuation issues under the TCJA.

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