Divorcing parties may be considering alimony more closely
There are some people who may think that spousal support is outdated or unnecessary. However, alimony continues to be awarded in numerous divorce cases. Currently, individuals ordered to pay support can deduct the amount paid from their taxable income. After the end of the year, that will no longer be the case under federal tax law.
Kentucky residents currently going through divorce or who believe they will be in the near future may want to pay particular attention to these tax law changes. It is possible that parties may feel more reluctant to pay spousal support because they will no longer be able to count that deduction when tax time rolls around. As a result, individuals may want to consider ways to reach the outcomes they desire.
For parties currently going through the marriage dissolution process, they may want to try to reach their settlements sooner rather than later. If divorce decrees are issued before the end of the year, the new tax laws will not apply to alimony terms. Of course, it is not always possible to speed up such proceedings, and some orders may not come about until after Jan. 1, 2019. If that looks like it will be the result, individuals may want to consider potentially providing a lump sum of money or using assets to negotiate an alternative to continual spousal support.
Alimony can be difficult to negotiate under many circumstances. Because the new federal tax laws will go into effective in just months, Kentucky residents may want to review their options for coming to the most agreeable settlement terms. Concerned individuals may wish to speak with their legal counsel about paths they could follow.