UPDATE – 12-15-2017: Divorce: Alimony Gets a Short Reprieve … Then the Ax


Wednesday, December 13th, 2017

New Information From the Tax Conference Committee

Money roll and judges hammer on wooden tableAccording to the bill coming out of the conference committee, it appears the agreements that predate January 1, 2019 will remain deductible to the paying spouse and treated as income to the recipient spouse.

After December 31, 2018, alimony would no longer be deductible by the payor for new decrees. Payments would be excluded from the recipient’s income.

The consequences:

If divorce is being considered in states like California, people need to push their agreements through.

 

Armand & Robbin D’Alo