Couples in New Jersey who have finally come to the decision that they will end their marriage understandably may feel overwhelmed by the emotional toll of the choice they have made. However, if they believe that one of the spouses might be deserving of spousal support, they will not want to wait long before taking steps to get their divorce underway. As difficult as this sounds, the reason for this is because by waiting, that person may end up with a lot less in alimony than if they can manage to get their divorce completed this calendar year.
As reported by CNBC, current alimony payments are tax deductible by the person who makes the payments and while that means the receipient has to pay the taxes it also means the paying spouse may be more willing to agree to making those payments. Under the new tax plan, any divorce completed as of January 1, 2019 or later will find the paying spouse also responsible for income taxes on alimony. As such, these spouses may not be so willing to agree to spousal support.
In a divorce, it might take several months before couples can get to a final agreement and therefore time is of the essence for anyone wanting to get alimony under the current law.
Any person in New Jersey who is approaching an imminent divorce and wondering if the tax change relative to spousal support may be good or bad for them might want to consult with an attorney for guidance.