Alimony can be a contentious issue, and once settled, many might prefer to leave well enough alone. Sometimes, though, revisiting and revising alimony agreements are necessary. For instance, if the payor agrees to a longer term of payment or the recipient agrees to a shorter term, or the Property Settlement Agreement allows for modification of…
Read MoreWhy were alimony deductions for payors eliminated (for divorces after December 31, 2018) by the Tax Bill of 2017? Most likely it’s due to a disparity in tax reporting by individuals over many years. While legislators searched for ways to replace the enormous revenue cuts the bill proscribed, alimony was an easy target. According to…
Read MorePrenuptial agreements don’t first come to mind when one thinks of the new Tax Act. As previously discussed, the Act (signed by President Trump on December 22, 2017) will eliminate tax deductions for alimony beginning in 2019. How does this affect existing prenuptial agreements? Many prenuptial agreements contain language about alimony in case of divorce,…
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