Family Law: Alimony May Not Be Tax Deductible in 2018

| Dec 20, 2017 | Family Law

Divorcing couples and their family law advisers are scrambling to cope with the possibility that alimony won’t be tax deductible for divorce agreements signed in 2018.

Here is the difference repeal would make: Alimony, also called maintenance, is typically used when one spouse of a divorcing couple earns far more than the other. Alimony payments continue for a period of years and help defray the expense of splitting one household into two.

In its version of the tax-overhaul bill, the House of Representatives included a provision repealing the current treatment of alimony for divorce agreements signed after 2017. The change is projected to raise $8.3 billion over 10 years.

Careful family law attorneys also are including language to address the potential change in the law.

If the alimony deduction is repealed, one beneficiary would be the IRS. It will no longer have to police a large tax gap between what is deducted by alimony payers and what is reported by alimony recipients.

Article from Fox Business.  Read more here

Get Started By Contacting Our Firm

How We Are Different

Excellence
We strive to become one of the most sought-after providers of legal services in the Metropolitan Detroit area.
Service
We endeavor to meet or exceed the expectations of our clients in all aspects of their legal representation.
Encouragement
We promote a collegial atmosphere in which all individuals are encouraged to learn, improve and excel and to become leaders in the legal, business and civic communities.
Community
We will pursue our belief that individuals with a sense of family and community and with interests outside the practice of law are better for it.
Creighton McLean & Shea PLC

14881 Farmington Road
| Livonia, MI 48154

Phone: 734-245-9289  Fax: 734-422-0461