New Tax Plan Could Mean Major Change for Alimony

It appears that the latest version of the newest Tax Reform will have a major impact on divorce negotiations currently in process and all new cases.
In short, presently Alimony is deductible to the payor and includable to the payee.
However, problems with each ex-spouse utilizing different figures for these payments have been the basis for removing them all together.
This will have a huge impact on the person paying alimony and all pending and future settlements or proposals in litigation will need to be scrutinized using a whole different perspective.
While nothing has passed yet, it appears that this aspect of the probable new law will remain when the final bill has its final vote. So stay tuned and be careful if you’re presently in the midst of divorce negotiations.