Call Today (480) 900-5538

New tax changes could ignite alimony battles during divorce

Most people know that ending a marriage can be an expensive process. However, tax reform could make divorce even more expensive in Arizona and across the country. The new tax laws have to do with alimony payments. Alimony, often called spousal support, is a court-ordered payment from a higher-earning spouse to a dependent spouse following a divorce. A change in the way alimony is taxed could make divorce negotiations more challenging.

Current tax laws give a tax break for those that pay alimony. Payers can subtract money paid out to a former spouse from his or her taxable income. However, new tax laws include a provision that does away with this tax break. This controversial provision could spark battles between divorcing couples since those that pay alimony will lack incentive to be more generous toward a former spouse.

This may ignite feelings of resentment in those receiving alimony. The new potential for disagreement could mean that more divorce cases will be headed to court. Child support payments are often calculated together with alimony payments, so the new tax changes could also have consequences for child support as well. The new changes regarding alimony go into effect in 2019.

Deciding to end a marriage can start a difficult and emotionally exhausting process. And these new tax laws can add confusion to an already tumultuous experience. Those in Arizona that have questions about divorce or tax changes affecting divorce could benefit from discussions with a divorce attorney. A skilled and knowledgeable lawyer could help individuals navigate through this difficult and often confusing experience.

Source: Fortune, "Donald Trump???s Tax Law Could Make Getting Divorced Even Worse", Feb. 15, 2018

No Comments

Leave a comment
Comment Information
Reppucci & Roeder Attorneys at Law | 5727 N. 7th Street, Ste. 205, Phoenix, Arizona 85014 Phone: (480) 900-5538 Map & Directions
Facebook Twitter Linkedin Google Plus
Review Us