Alimony tax laws in the United States have undergone drastic changes in 2019, and these changes will have major consequences for divorced couples. Under the old tax laws, alimony payments were deductible from the income of the paying spouse. These payments could also be included as part of the taxable income of the spouse receiving support.
Under the new Tax Cuts and Job Act, spouses who have to pay alimony won’t be able to make the deduction on their federal taxes. On the other hand, spouses who receive alimony payments won’t have to include the payments on their federal income taxes. As a result, the spouse who earns more is left with a significant disadvantage because they no longer have the tax benefit but still have to come up with the funds to support their ex.
How Do Courts Determine Alimony Awards?
This law has major implications if you plan to get divorced in 2019. If you think you will be ordered to pay alimony, you should consult with an experienced lawyer to find out how the tax law changes will impact your case.
Courts look at the following things when deciding if a spouse should pay alimony:
- The income of each souse
- If the spouse seeking alimony has marketable skills
- The future earning capacity of the petitioning spouse
- The length of the couple’s marriage
- The health of both spouses
- The value of the assets and property awarded in the divorce
- If there is history of domestic violence
Divorce Lawyers Serving Hamden
Are you ready to divorce your spouse? Are you worried about how the new tax changes might affect the outcome of your case? At Goldblatt, Marquette & Rashba, PC, we are dedicated to assisting clients throughout Connecticut with their divorce disputes, and we have the skills and resources that you need to protect your rights and interests. Give us a call today to learn how we can serve you.
Call (203) 687-4050 to set up a case evaluation with an experienced Hamden family law attorney.