With the Tax Cuts and Jobs Act, comes news questions and maybe not enough answers. As of lately, the legal community has been discussing the issues of alimony payments under the new tax law.
Tax Cuts and Job Act/Alimony
Before, it was simple enough- the spouse paying alimony received a tax deduction which was always helpful in Mediation, and the receiving spouse paid income tax on the alimony payments received. However, with the new tax law, the alimony deduction might be lost and federal taxes on it are to be paid. Which means at a mediation, this accounting has to be taken into consideration and you have to seek the services of a financial adviser, CPA, or tax attorney before you sign on the dotted line.
USA Today wrote an excellent article on this issue. Follow this link for the full article.
Alexander Hernandez, Esq.
Alexander is a family law attorney practicing in Jacksonville and the surrounding areas and Miami, Florida.