New Tax Law Affects Alimony, Could Spur Divorce Surge

"Some experts are predicting a surge in divorces this year as spouses paying alimony seek to take advantage of the deduction before it is eliminated.

Because of the new tax law, spouses paying alimony won’t be able to take a deduction while spouses receiving alimony will no longer have to report it as income, report Politico, USA Today and Morningstar. The alimony deduction has been in the tax code since 1942.

The change doesn’t affect people who divorce or sign a separation agreement before 2019, according to USA Today.

Spouses negotiating alimony payments may try to pay less when the change takes effect because there will be no tax savings, some experts told the newspaper. Brian Vertz, a family law lawyer in Pittsburgh, said women are more likely to be hurt by the change as they negotiate divorce terms."


Full Article Here