The 2019 spousal maintenance tax code changes affect anyone that pays spousal support. Watch this video to see how the law change affects your pocket book.
Question:
What changes occurred in 2019 for the spousal maintenance tax code?
Answer:
For about the last 75 years, spousal maintenance has been deductible from the income of the party who pays spousal maintenance, and it’s been included in the income of the party receiving spousal maintenance. However, for any case where we do not have a signed agreement or a judgment of divorce by December 31, 2018, spousal maintenance will no longer be deductible for the person who is paying spousal maintenance and it will no longer be included in the income of the recipient.
We do not yet know in New York State how the courts are going to handle this issue. The payment of spousal maintenance by a high-income payer has often been a negotiating tool because we have used the tax code to plan how much income can be paid out in total to the other party. That’s all going to change, and we just don’t know how much it’s going to change at this point in time.
Have you or a loved one gone through the divorce process and have questions about the 2019 Spousal Maintenance Tax Code changes? Contact our experienced Saratoga spousal support lawyers at Jean Mahserjian, Esq., PC today to schedule a confidential consultation and case evaluation. Let our experience work for you.
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