Serving clients throughout Central Pennsylvania
Legal Experience & Local Knowledge

Does The New Tax Law Make Divorce Harder?

For 70 years, spousal support, also known as alimony, was taxed a certain way. For the payee, it was taxable income. For the payor, it was deductible. As of January 1st, 2019, all of that has changed thanks to the Tax Cuts and Jobs Act. Spousal support payments are no longer deductible for the payor, nor are they taxable income for the payee. 

A Big Impact On Divorce Cases

According to an article from CNBC, the change caused a rush to finalize divorces before the start of the new year. Some have argued that the change will make divorce harder. The ability to deduct alimony payments represented a potentially substantial amount of money that will no longer be in play without the deduction.

However, the article points out that there are other tax changes that should be taken into account when going through the divorce process, and these changes could be beneficial in some circumstances. For example, the cap on mortgage interest deductions has been lowered, which may need to be considered when ascertaining what will be done with the family home. Additionally, the child tax credit has increased, which may need to be taken into account when making child custody arrangements.

Ultimately, the changes to the tax rules do not necessarily mean that divorce is any harder than it was previously. Hubert Gilroy and Petra Gross of Martson Law Offices understand the tax ramifications associated with spousal support and will take them account when offering guidance during the divorce process.

No Comments

Leave a comment
Comment Information
Information | Advice | Advocacy

Contact Us To Schedule An Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

10 East High Street
Carlisle, PA 17013

Phone: 717-601-2866
Fax: 717-243-1850
Map & Directions

621 West Main Street
PO Box 300
Thompsontown, PA 17094

Phone: 717-535-2100
Fax: 717-535-2103
Map & Directions