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Alimony attorneys consider impact of tax law changes on clients

Dec 24, 2018 | Firm News, Spousal Support

As West Virginia readers know, several new tax laws will be in effect at the beginning of the year. Very soon, couples walking through divorce will have to rethink how spousal support payments will work and what they could mean for a person’s taxes. Alimony attorneys understand how important it is to adequately prepare clients for what these changes could mean for them.

For some, it will cost more to divorce in 2019 than it did in 2018. Previously, the person paying spousal support would be able to deduct that amount when filing taxes. Additionally, the party receiving the alimony would have to pay taxes on the amount received. However, that will no longer be the case once the clock strikes midnight on New Year’s Eve.

On January 1, 2019, the person who has to make alimony payments will not be able to deduct that amount from his or her taxes, and the recipient will no longer have to pay taxes on it. It is possible that these changes could make it less likely that divorcing parties will be willing to negotiate on the issue of alimony. Consequently, it could lead to more contentious and financially complex divorces.

Before a West Virginia reader moves forward with divorce, it would be beneficial for that person to understand these new tax changes and how they could affect him or her. Divorce is difficult, and if ones is planning to take this step in 2019, the time to start preparing with alimony attorneys is now. It might be helpful to first reach out for an evaluation of the individual case.