During a divorce, an estranged Texas couple may have to determine how they will deal with alimony payments in addition to dividing up marital property. However, the 2019 tax laws may have a financial impact on alimony, so those who are looking to finalize their divorce in late 2018 or early 2019 should be aware of the changes
.Starting Jan. 1, 2019, the tax laws that will go into effect will have a major impact on alimony or spousal support. Under the 2018 tax laws, the alimony payments that were being made were deductible by the payer The recipient of alimony payments dealt with the taxes. Going forward, less alimony may be paid to the recipient.
Further, the changes to tax laws in 2019 will also have an impact on prenuptial and post-nuptial agreements. Even those who are not planning on getting a divorce anytime soon may want to look over some of the items as the agreements may have assumed that alimony payments may be deductible. If the provisions are not changed, the agreement could have major financial consequences that could affect both individuals.
Some former spouses may need to depend on alimony or spousal support to survive following a divorce, especially if they did not earn an income during the marriage as they were taking care of the children or the home. However, because the tax laws are changing in 2019, a family law attorney may discuss the financial consequences of finalizing the divorce in 2019 or beyond. If the former couple wants to finalize the divorce before the tax law changes, the attorney can help negotiate an agreement on behalf of a client.