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New Tax Laws Will Affect Spousal Support

In 2019 spousal support will not be a tax deduction. There may be time to finalize your divorce this year to maintain the benefit.

A common alimony deduction will be eliminated for any divorce finalized after December 31, 2018. This new law is part of the Republican tax overhaul President Trump signed into law late last year. The looming deadline has lawyers working overtime and their clients scrambling to become ex-spouses in a bid to avoid paying higher taxes.

When a couple divorces, alimony (spousal maintenance) may be awarded to provide financial support for the lower-income spouse. In the past the payers have been able to deduct alimony payments on their annual returns, while the recipients paid taxes on the income. This deduction elimination shifts the tax burden from the recipient to the payer, which in most cases means more of the money will go to the government in the form of taxes.

You can learn more HERE.

There is a lot at stake with a divorce, don’t make the mistake of trying to handle it on your own. Schedule a free initial telephone consultation with the skilled lawyers at McKellar & Easter, Attorneys at Law, to discuss your situation and your options.

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