As we have now shifted into 2019, it’s time to consider how recent tax changes may affect your divorce in Maryland or Washington, DC, specifically the issue of alimony. Understanding the new rules and how they impact you and your family will enable you to make decisions that work in your best interests.
One of the many notable changes has implications for those seeking alimony or who may have to pay alimony. Prior to 2019, those paying alimony were able to deduct those payments. At the same time, the recipient was required to report the money they received as taxable income when they filed.
As of January 1, 2019, this has changed. Moving forward, alimony payments will no longer be tax deductible by the payor, or includable as income to the recipient. This is a significant change, that will have an impact on rulings by the Court and negotiations in settlements.
It is highly advisable that you speak with an experienced attorney to assure your understanding of the law, especially related to the new tax laws, now in effect, that may impact your divorce.
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Serving clients for nearly 70 years in Washington, DC and Maryland, Brodsky Renehan Pearlstein & Bouquet firm is proud to have attorneys with unique and diverse backgrounds, all of whom practice primarily divorce and family law. If you are going through a divorce in 2019 and wish to have the best representation to assist you with matters such as alimony, please contact our office today.