New Tax Law Could Encourage More Divorces in 2018
Some experts are predicting that a change in alimony rules under the new tax law passed late last year may increase the number of divorces this year. The new tax law changes the alimony deduction, which has been in place since 1942.
Beginning in 2019, spouses who pay alimony won’t be permitted to take any deductions, and spouses receiving alimony won’t be required to report those payments as income. Some experts think this change will negatively affect vulnerable spouses trying to achieve a stable financial situation after their divorce by incentivizing the spouse paying alimony to negotiate lower payments.
The change will only affect people who divorce or sign a separation agreement beginning in 2019.
Heather Buchanan is a second-year law student at the University of Colorado Law School and contributes to IAALS Online. Please direct inquiries about this post to email@example.com.