New Tax Bill Eliminates Alimony Deduction

For all divorces occurring AFTER December 31, 2018, alimony payors will not be able to deduct alimony payments. SO, if you are debating how long to wait before starting a divorce action, whether you will be paying or receiving alimony, your case may become a lot more difficult to settle in 2019 because alimony payments will have no tax consequences. In the past, deductibility of alimony was often the factor that allowed parties to survive financially and move forward.

Do not assume that if you start a divorce proceeding in June, July or August that you will be able to negotiate and agreement and get divorced not later than December 31, 2018.

If you have any questions, call me to find out how this will impact you!