Important Alimony Changes Beginning January 1, 2019

With the new tax laws, alimony is no longer going to be deductible to the payor or claimed as income by the payee. Effective January 1, 2019, the new law takes effect. Other changes in the tax bill worth noting include the fact that there is no longer a tax exemption for children. However, the Child Tax Credit has been doubled to $2,000 and is now not phased out until $200,000 in earnings. Additionally, the Head of Household filing status is now more valuable. All these items must be considered in any divorce negotiation in an attempt to create the most advantageous situation for the benefit of the family.

One thing I will add is this: many lawyers and mediators are calling 2018 the Year of Divorce as a result of these tax changes. Friends, divorce is one of the most traumatic events you can go through in your life. Do what you can to save your marriage if at all possible especially where there are kids. I offer a lot of unique resources for couples and would be happy to consult with you free of charge to discuss why saving your marriage may be the best option you are not considering.

However, if divorce is necessary for you and alimony is part of your divorce picture and even if you have not yet decided how you are going to move forward, I offer pre-divorce consults which help you not only to properly prepare for the prospect of divorce but also help you better understand the issues in your situation before the crisis of divorce hits. Knowledge is power and having it before you are in crisis mode makes a world of difference.