According to the ABA Journal on February 6, 2018, 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 before 2019.
Will the change affect prenuptial agreements that call for payment of a set amount of alimony if there is a divorce?
The lawyers at Allen Dell are available to answer these questions and assist you with your family law needs.