tax changes and your divorce

{2 minutes to read} Starting on January 1, 2019, Spousal Support or Spousal Maintenance (also known as Alimony,) will no longer be tax deductible to the payor, nor taxable to the payee.

If you are contemplating divorce or a legal separation, and want to benefit from the existing law where you can still get a tax deduction for paying support to your spouse, you must have a signed and notarized agreement no later than December 31, 2018. Once this document is signed, you will be “grandfathered in” so that if you are the payor, all future payments will be tax deductible.

This change in the law will not affect any other parts of your divorce such as:

Child support payments;
Lump sum payments;
Sharing of your assets.

None of these presently have tax consequences, nor will they have any tax consequences once the new tax law takes effect on January 1, 2019.

I am well aware that it takes a lot out of anyone to make decisions, especially when going through such difficult and emotional times, as a separation or a divorce. Adding a ticking clock can make things feel even more stressful, but being able to deduct spousal support payments on your tax returns may be a significant advantage for you.

REMEMBER: You must have a signed and notarized legal separation or divorce agreement by December 31, 2018 if, as the payor, you would like to continue to deduct spousal support/maintenance payments.

If you have not yet completed your mediation process, or have decided to get a divorce and want to move forward, please give me a call so that you can sign your Legal Settlement Agreement before the end of this year.

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Jennifer Safian

jennifer safian. divorce and family mediator
divorce and family mediation
upper east side of manhattan (nyc)
new york, ny
(917) 881 5206
jpsafian@gmail.com