How Tax Reform Will Affect Alimony in CA

If you are going to be filing for divorce in 2019 and expect to pay alimony, or if you are looking to modify an existing alimony order, you may be in for a surprise. Tax laws that recently took effect have made some changes to how alimony affects your taxes. Read on for more information about the changes that have recently gone into effect.

Tax Reform and Alimony in California

Because of the federal tax reform, those who pay or receive alimony may notice the following changes:

• Alimony payments used to be deductible for the payer. They are no longer deductible under the new tax law.
• The payee (the person receiving spousal support payments) used to have to report those payments as income on their tax return. The payee no longer has to report spousal support payments as taxable income.

Keep in mind that these are changes to federal tax laws, meaning state laws could have different requirements.

What Does This New Law Mean for You?

If you are the person making spousal support payments, you may want to speak to a lawyer about alternative ways of lowering your tax liability. If you are the receiving spouse, this law will benefit you, as it will lower your taxable income considerably. Keep in mind that this new law may compel the court to adjust the amount of spousal support that paying spouses will need to pay moving forward. The courts will likely take this law into consideration when making decisions on spousal support orders.

Reach Out to a Divorce Attorney

Are you in the process of filing for divorce in California? If you need help with your divorce or a related matter, reach out to a Rancho Cucamonga divorce attorney for assistance. Your attorney can help you understand how the new tax law will affect you. The Law Office of Laurence J. Brock can be reached by dialing 909-466-7661. You’re also welcome to visit our website for more details on alimony in California.