For divorces finalized beginning January 1, 2019 and going forward, alimony payments will no longer be deductible to the payor nor will alimony be considered income to the payee under the provisions of the new federal tax law. This change has caused a run on the courthouse for those wanting to get divorced in 2018 and still have the old alimony tax rules apply.
For those of you who are just beginning to consider divorce, or are the midst of your divorce, what does this change mean to you and your negotiations regarding alimony?
The change in the tax law simplifies the alimony calculations. The parties can concentrate on the 14 factors set forth by the alimony statute which must be taken into account in determining alimony. Those factors include the actual need and ability of the parties to pay, the duration of the marriage and the parties marital lifestyle.
As your divorce mediator I will review all the factors with you to help you to reach a fair and equitable alimony amount.