For divorces entered on or before December 31, 2018, alimony (maintenance) has been deductible to the maintenance payor. And the spouse receiving maintenance includes it as income for tax purposes. What this means is that generally the alimony payor has received a tax break on alimony as paid.
For divorces and separation agreements entered on or after January 1, 2019:
No longer will maintenance be deductible for the spouse who pays maintenance.
The recipient no longer includes maintenance as taxable income.
The loss of the tax break of maintenance will have a significant negative impact on divorce cases when at least one spouse has a high tax rate. Basically, there is less money to divide in a divorce that occurs after December 31, 2018.
For orders modified after that date but where the underlying divorce was entered before January 1, 2019, generally maintenance should continue to be deductible. On the other hand, the parties could specify that the new tax law regarding how maintenance is treated would apply.
The attorneys at Hoffman Estates Divorce Lawyer represent clients throughout the Hoffman Estates and surrounding areas. They represent clients in all types of divorce and family law matters, including the following:
- Child Custody
- Child Support
- Prenuptial Agreements
- Domestic Violence
- Orders Of Protection
- Grandparent’s Rights
Marder and Seidler have been practicing divorce and family law in the Hoffman Estates area for 40 years. They attend courts in Cook, DuPage Mc Henry, Kane and Lake Counties. They support you in every stop along the way in a fair and aggressive manner.They are sensitive to your feelings and needs.
In many cases the lawyers at Marder and Seidler can successfully negotiate a settlement without the need for costly court proceedings.
If you are contemplating a divorce or have been served with papers, call Marder and Seidler today at 847-985-6767 for a free and confidential initial consultation at affordable rates.
24/7 hour emergency service. Call and connect directly to a lawyer.
For more information visit their website at www.marderseidlerlaw,com