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Do You Have a Pre-Nuptual Agreement that Has a Provision for Alimony?Print PDF
Then you need to read this. The new Federal income tax law could affect you in a big way. For divorces after December 31, 2018, alimony will no longer be tax deductible by the person who pays it. Nor will it be taxable to the person who receives it.
Everyone hopes that their marriage will last forever, but in the event yours ends in divorce, alimony - also called spousal support - could be an issue. If you are divorced before January 1, 2019, alimony payments can still be tax deductible. But, after that date the new law will apply, and the alimony payments will not be deductible by the payor nor taxable to the payee.
What should you do about it? If you have a pre-nuptial agreement that provides for the payment of alimony, you need to contact a lawyer. You can get advice about whether or not to amend your pre-nuptial agreement based on the new tax law. Keep in mind that even if you want to amend, both you and your spouse will have to agree to the amendment.
Should you find you need advice or assistance, don’t hesitate to contact us.
To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any Federal tax advice contained in this message was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.