Why alimony may be more contentious than ever

One of the biggest sticking points of many divorces is alimony. It’s tough for either party to willingly contribute to an ex’s financial well-being. Unfortunately, there’s a new reason this may be the biggest issue in many New Jersey divorces. New tax designations The 2017 Tax Cuts and Jobs Act removed alimony’s tax benefits. Traditionally, alimony was taxable income for those who received it. On the flip side, paying out had been tax deductible. That’s no longer the case. Those tasked with paying out no longer enjoy any tax benefits and that could drag out alimony battles. This new designation may create friction in many separations going forward. The spouse forced to pay alimony will do everything possible to lower the amount, as he or she cannot recoup anything via taxes. This could create a situation where a divorce stalls for months over what’s considered the proper amount to pay. How it could affect previous divorces The new tax…

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