Effects the New Tax Bill Will Have on Divorce
Now that the new tax bill has become law, you may be wondering how those changes affect your current divorce agreement or final judgment of dissolution of marriage. If you enter or entered into a divorce agreement wherein you are paying alimony that is taxable to your ex-spouse and deductible by you, your alimony agreement is not changed by the new law. This law affects new alimony agreements entered into after January 1, 2019. If you entered into an agreement before January 1, 2019, and you modify the alimony portions of that agreement after January 1, 2019, then you will no longer be able to deduct the alimony expense you are paying. If you are paying alimony and need to modify that amount, 2018 is the year to modify. Your new alimony amount can still be taxable to your ex-spouse and deductible by you if you make those changes before January 1, 2019.
If you have questions about the changes the new tax bill will have on your divorce agreement, and want to discuss your options with an attorney, call Angela R. Neave, Esquire, at (954) 981-2200 for a free consultation.