With the new tax bill on the cusp of being signed into law, what does that mean for you?
Alimony status will remain unchanged for 2018, but for 2019 will not be a deduction for payor or income to payee. Spousal Support (allocated) should be treated same.
This will likely cause changes to PA law for support calculations since the current system utilizes 40% difference of net income for those without children and 30% of net income for cases with kids.
This will also touch ancillary issues of who gets relief at tax time, since personal exemptions are gone but child credits are increased slightly.
Largest impact looks to be for divorcing couples with and without children who will have a future support component (Alimony) to the division of their property and are trying to produce a settlement agreement or Order from Judge or Master for Equitable Distribution. Bottom line, strategy will change, planning will change, negotiations will change, we will change too and respond accordingly.