Wednesday, June 26, 2013
The recent DOMA decision not only has huge implications for gay marriage, it also greatly affects gay divorce.
Experts say the DOMA decision will benefit divorced couples, as divorcing spouses will no longer have to pay gift or inheritance taxes when splitting their assets. Wealthier spouses can also deduct alimony payments from their federal income taxes.
Unfortunately, divorce is still difficult for couples living in states that do not allow same-sex marriage. They will have to go to a state that does recognize same-sex marriage and, in many cases, satisfy a residency requirement before a divorce is allowed. Same-sex couples seeking a divorce may also face protracted child-custody battles if a non-biological parent has not adopted the child.
See Quentin Fottrell, Supreme Court Simplifies Gay Divorce, Market Watch, June 26, 2013.