As part of the tax overhaul passed last year, a major change is coming to alimony. Effective January 1, 2019, alimony in all newly granted divorces will be taxable to the paying party, rather than the receiving party.
Will I pay or receive alimony?
Alimony is only awarded in a divorce or legal separation. Most often, alimony awards are part of a divorce decree. Whether a person will be awarded alimony or not depends on a long list of factors, but most importantly:
- The length of the marriage
- How much income each person will or should be able to earn after the divorce
- What assets each party will have after the divorce.