New Tax Laws and Changes to Alimony
With new changes in the 2019 tax laws, I have had quite a few clients ask me about the affect on their alimony negotiations. As many people already know, the alimony payments have come under new changes.
I came across this article, and remembered the importance of the recent change in tax law. It used to be that there was a tax deduction for spousal support, or commonly referred to as “alimony”, payments for the payor. The payor of support would receive a reduction off their gross income for support payments, and the payee or recipient of support would include the support received in income. These are now changes for alimony orders after 12/31/18.
Federal legislation has taken this tax deduction away, and has changed the landscape of how spousal support considerations enter into negotiation during divorce. The article wisely points out that this has a spillover effect into child support and division of community property during divorce. If you are going through a divorce, it is important to have representation that is aware of this tax consideration in negotiating the best deal possible.
If there are any legal questions you may have, I encourage you to, please contact my San Jose Divorce Lawyer office. My San Jose Family Lawyer offices assists many people who are going through family law related issues. We have many Affordable San Jose Divorce Lawyer solutions for many different budgets. San Jose unbundled limited scope family lawyer.
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