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New Tax Bill Impacts Alimony

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New Tax Bill Impacts Alimony

Today, the government passed the Tax Cuts and Jobs Act. This impacts many different areas of the lives of taxpayers, including those who are divorced with alimony obligations. Up until December 31, 2017, the current law that states alimony is tax deductible to the spouse who is obligated to make these payments and the spouse who receives the payments can include them in his or her income. Of course, with the changes in the law, things are going to be a bit different for those who pay and receive alimony in 2018.

The new tax laws will not allow the alimony payments to be tax deductible. In addition, the recipient of the alimony payments will not be able to include them as part of their income. The individual who pays the alimony will be taxed instead. These changes only apply to divorce agreements that are signed on January 1, 2018, and after.

It will be interesting to see how the changes to alimony protocols will impact the New Jersey courts’ decisions to award alimony or not. It is important that couples going through divorce make themselves aware of the tax implications that divorce and alimony currently have and may have in the future. If you are considering divorce or are facing an alimony matter, contact our firm today for strong legal representation.

Ross and Calandrillo, LLC is a full-service divorce, family, and real estate law firm in Mountainside, New Jersey. For strong legal representation in all of your family law matters, contact Ross and Calandrillo, LLC to schedule a consultation.

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Mediation Services

Our firm believes that exploring alternatives to litigation can greatly benefit our client. Our firm’s established mediation practice can help you resolve family law issues more efficiently, amicably and at a lower cost. If you are interested in knowing more about our mediation services, contact the firm to discuss your situation.

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“Robyn navigated me through a difficult period and explained every piece of the process in great detail along the way. I know in the end...”

– Clarissa –

“Robyn Ross handled my two cases and won both, her passion and expertise was beyond a 5-star rating. She communicated with me through both cases...”

– Abdul –

“Liz represented me throughout a long and difficult divorce process. She was a godsend. Her knowledge, compassion, dedication, and commitment are unparalleled. I can not...”

– Peter –

“The hardest part of going through a divorce or separation is the children. I’m so thankful that I had this firm represent my case. Ross...”

– Paula –

“This is a great counsel team. Very knowledgeable, professional and compassionate. They also make you feel like you are their only client, very attentive!”

– Bettyna J. –

“This firm and it's team are the best out there, hands down. Robyn Ross helped me through a difficult time. Something that should have been...”

– Nestor –

“Robyn navigated me through a difficult period and explained every piece of the process in great detail along the way. I know in the end...”

– Clarissa –

“Robyn Ross handled my two cases and won both, her passion and expertise was beyond a 5-star rating. She communicated with me through both cases...”

– Abdul –

“Liz represented me throughout a long and difficult divorce process. She was a godsend. Her knowledge, compassion, dedication, and commitment are unparalleled. I can not...”

– Peter –

“The hardest part of going through a divorce or separation is the children. I’m so thankful that I had this firm represent my case. Ross...”

– Paula –

“This is a great counsel team. Very knowledgeable, professional and compassionate. They also make you feel like you are their only client, very attentive!”

– Bettyna J. –
 

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