It seems reasonably clear that President Trump’s new tax law will make divorce an even more miserable experience. The majority of the nation’s top matrimonial attorneys believe divorce negations will become more acrimonious following a change in the tax treatment of alimony.
We can help you solve your spousal support issues, call the Law Offices of Paul F. Sherman at (503) 223-8441 or Contact Us for a free spousal support consultation.
SPOUSAL SUPPORT PAYMENTS ARE NO LONGER DEDUCTIBLE FROM YOUR TAXES.
Alimony, which is commonly known as spousal support or maintenance, is to be paid by the higher earning spouse for a period of time after the divorce. Pursuant to former Internal Revenue Service rules, money paid a former spouse can be subtracted from the payer’s taxable income, lowering his or her taxes. Taxes also had to be paid on any alimony, but the recipients typically had much lower income and thus paid lower tax rates.
The alimony deduction made a substantial economic difference for divorcing couples and simply allowed people to pay more.
It is anticipated that battles will ensue since alimony payers will no longer have a tax deduction for their spousal support payments. The previous rules made it much easier for divorce negotiations by giving the party paying spousal support a dollar-for-dollar deduction from their income taxes.
The final legislation applies to divorces finalized in 2019 and beyond. This will provide time for divorcing couples and their attorneys to adjust to the new regulations. It will also mean that more and more couples will be forced into extended litigation regarding the nature and duration of spousal support in their cases.
CONTACT PAUL F. SHERMAN FOR EXPERT ADVICE ON PAYMENT OF SPOUSAL SUPPORT IN YOUR DIVORCE CASE.
We know you have questions, and we have answers. If you would like more information about spousal support, call the Law Offices of Paul F. Sherman at (503) 223-8441 or Contact Us for a free telephone consultation.