The Tax and Jobs Act enacted in December, 2017 will have a profound impact on the tax treatment of spousal support and alimony payments. Currently, any individual paying spousal support or alimony may deduct these payments from his taxable income while the spouse receiving said payments must report these payments as taxable income. Under the new tax law, the treatment of spousal support and alimony payments after December 31, 2018 will dramatically change. Spousal support and alimony payments will no longer be deductible for the payor and no longer considered taxable income to the party receiving spousal support or alimony. However, any settlement agreements in existence as of December 31, 2018 are grandfathered and will not be affected by this change.

This tax treatment change of spousal support and alimony may have a significant impact on negotiations of any pending support or divorce proceeding. It is important to have an experienced and knowledgeable attorney review your circumstances to determine if the new tax implications may affect you whether you are presently engaged in, or may plan on pursuing, a support or divorce action.

| in News

Contact Us