Alimony and the New Tax Plan

Alimony and the New Tax Plan As everyone knows President Trump has signed into law the new tax bill. This tax bill has been a frequent subject of congress, the media, and various advocates. The change that most affects many Ayo and Iken clients is the new tax treatment for alimony payments. The change promises to effect future alimony negotiations, future court cases, and decisions whether to reopen past alimony judgments. This is a decision of national significance and will affect alimony in every single state.   You are probably aware the new tax law eliminates a key tax provision that affects alimony and its impact:   Payments of alimony shall no longer be deductible Receipt of alimony payments shall no longer be considered taxable income In other words alimony will now receive similar tax treatment as child support.   This change represents a huge shift in the treatment and calculation of alimony. It will be years before…

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