Major changes to taxation of alimony!
Alimony in divorce decrees entered into after December 31, 2018 will be treated much differently than before:
- It will no longer be deductible to the person paying the alimony.
- It will no longer be taxable to the recipient of the alimony.
For most of you, it will mean usually mean the tax rate on the person paying the alimony will be higher than it would have been to the recipient.
If you are planning or anticipating a divorce, these revised tax consequences will be extremely important to you and should be a major factor in negotiating your divorce settlement.
Alimony is not the only possible component of a divorce settlement and this change should be considered with the rest of your agreement. Your divorce attorney should absolutely be well-versed in this area.
Of course, if you need tax consultation, please let me know at any time 248-592-1510 or firstname.lastname@example.org.