How will alimony change at the end of 2018?

On Behalf of | Oct 6, 2018 | Alimony |

No one begins a relationship thinking of how it may end. As a result, many people may feel unprepared or lost if the time has come to separate and file for divorce.

The laws of Florida and the United States help separating spouses by laying out the process for proper legal divorces. Sometimes, the laws will change to adapt to contemporary needs, and people should take note of how it may affect their future.

What’s the major law change that matters to divorces?

A new tax code at the federal level is changing the tax structure on alimony, the court-ordered support for one former spouse from the other. This affects both the payers and receivers of alimony payments, with the former seeing more responsibility.

How is alimony affected by the new tax code?

Alimony is currently tax-deductible for the payer, who is generally the higher earning spouse, while the income from alimony is taxed at the appropriate income level and paid by the recipient. Now, the payer will no longer receive the deduction and the recipient will no longer have to count alimony payments as income for tax purposes.

How and when will this matter?

The tax code comes into effect at the beginning of 2019. Divorces settled on or before Dec. 31, 2018, will be handled by the old rules. Some lawyers say the best solution is to pay less alimony so the tax liability is lower.

Do I need a lawyer to help with this?

A lawyer is always a good idea during a divorce, as someone to represent your interests in court can also find more breaks and clear paths to the end of the process. An attorney may not be required but one can be a divorcing spouse’s best ally.