During this COVID-19 crisis, we are here to help you with your family law questions. Our firm is open for business and available to meet with clients through phone or video conferencing. Please call or email us today to schedule an appointment.

Law Blog

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on whatsapp

New Tax Law Will Affect Spousal Maintenance

Perusse Nixon Family Law Attorneys

Under current law, a person paying financial support to an ex spouse can deduct that amount from their income and the receiving spouse must claim that support as income. That will all change come January 1, 2019. The Tax Cuts and Jobs Act 2018 (H.R.1) will eliminate the spousal maintenance (alimony) deduction and the requirement to include it as income. The ability to get a tax savings from that deduction has always been the little something that took the sting out of paying an ex spouse each month.

Now with that benefit going away for the payor, it remains to be seen how this will affect litigation over spousal maintenance. Parties in a divorce completed by December 31, 2018 will not be governed by this new law. This tax treatment will only apply to those divorces completed after December 31, 2018 and to those modifications of pre-2019 decrees that specifically state that the new Act will apply going forward to any spousal maintenance payments.

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on whatsapp
Categories
Archives