By 2019, the Tax Cuts and Jobs Act will no longer deduct alimony from a paying spouse’s income. This will repeal a 76-year-old rule that has required the recipient to pay the taxes on alimony.
Divorce rush
If you live in New York, the need for divorce mediation by Long Island lawyers will be more relevant if you want to expedite the process of negotiations. Once the tax changes take effect, however, it may lead to messier court battles just because of disagreement over alimony payments.
Madeline Marzano-Lesnevich, head of the American Academy of Matrimonial Lawyers, believes this will be the scenario. Since men comprise the majority of paying spouses, the tax changes will prompt them to settle on a lower figure. On the other hand, their wives’ lawyers may argue their case for a higher settlement in front a judge, Marzano-Lesnevich said.
State capitals
A possible impact of the new rules on alimony payments could lead to a lower divorce rate in states such as New York. An analysis of the U.S. Census Bureau’s 2016 American Community Survey showed that Hudson ranked as the divorce capital of the state.
The city had a divorce rate of 16.7% in the last two years, while the state’s divorce rate reached 8.7%. Married couples accounted for more than 29% of the state population. The survey based its findings on a study of divorce cases among couples between 15 years old and above.
You should consult with a lawyer and find out how the new alimony system will affect your income. For now, your best course of action would be to hasten the divorce process before Dec. 31.