Friday, November 10, 2017
Divorce is often an ugly, bitter affair. Court-ordered alimony payments from one spouse to the other offer a monthly reminder of a tumultuous past and a bitter end to a once-happy marriage. A very dull silver lining to making these payments is that each dollar paid reduces taxable income by an equivalent amount. The GOP’s proposed section 1309 of the new tax bill would eliminate this deduction. Jacqueline Newman, New York divorce attorney said, “I’m just praying this does not go through. For many people in different income brackets, this is going to be horrible.”
See Tom Metcalf and Christie Smythe, Divorce And Taxes: How GOP Plan Could Make Splitting Up Costlier, Financial Advisor, November 9, 2017.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.