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Is the government encouraging divorce?

Posted by Admin Posted on Sept 21 2018

Is the government incentivizing me to get divorced before the end of 2018?  If you expect to pay alimony and want those payments to be tax deductible, then the answer is yes.  Starting in 2019 alimony payments made will not be tax-deductible to the payer, and will not be shown as income on the payee’s tax return.  This is the opposite of how things work right now.  Currently, if you pay alimony to your ex-spouse and meet the tax requirements, it is tax-deductible to you and must then be reported on your ex-spouse’s tax return as income.


It is important to also remember that payments considered to be child support will be taxed to the payor and tax-free to the payee either way. 


I expect that in the future, alimony will become less popular in general, but for this year at least, it’s still works in favor of the payer.


*Let it be known that I am personally in favor of strong marriages and I sorrow at the high incidence of divorce in today’s society.