Earlier this year the Federal government passed an overhaul to the tax system that made some major changes to the way that Americans will be required to pay their hard-earned money over to the government. One of those changes will impact men and women who plan to divorce and who will be parties to alimony agreements or orders. Alimony is an obligation that survives a marriage and that requires one person to provide financial support to the other after their legal relationship has ended.
Through this year, individuals in Washington and throughout the rest of the nation have been able to deduct from their taxes the money that they pay to their exes as alimony. However, come 2019 those payments will no longer be tax deductible. As such, people enter into alimony obligations in 2019 will not be able to enjoy this tax benefit.
Legal professionals have weighed in on this significant change and do not believe that it will deter individuals from seeking divorces. What may occur, some believe, is a reduction in the amount of alimony that individuals are willing to pay to their exes. If payers are not able to deduct the sums that they provide in support to their former partners they may not be as willing to provide as much as they would have with the tax break.
Alimony and taxes are a small part of the complete financial picture a person should have when they begin to prepare for their divorce. Whether they will potentially be an alimony payer or an alimony recipient, any Washington resident who has financial questions about their pending divorce is advised to seek independent advice for their legal needs.