New Tax Law Eliminates Alimony Deduction
For divorcing couples, alimony was a deduction that the payor could deduct from his/her taxes. However, with the new tax bill, starting in 2019, alimony will no longer be deductible.
The result of this change may make spouses reluctant to pay, and will hurt those spouses who depended on the income of the wage earning spouse. Another side effect will be timing – one side may want to rush the divorce before 2019 and the other side may want to delay.