Eric A. Tepper
2018 was a quiet legislative year on the matrimonial front in New York state. Ironically, it was federal legislation that is about to have a major impact on the matrimonial field. Specifically, the Trump tax reform legislation (officially called the Tax Cuts and Job Act) which was enacted at the end of 2017 will have its major impact on the matrimonial field effective Jan. 1, 2019.
In particular, the tax reform legislation eliminated the “alimony” deduction. Since approximately 1942, spousal maintenance has been deductible to the payor and includable in the recipient spouse’s income for tax purposes. The federal tax legislation eliminates the “alimony” deduction going forward. Maintenance provisions found in a Separation or Marital Settlement Agreement or Judgement of Divorce which were entered into by Dec. 31, 2018 should still be exempt from the new law and remain deductible to the payor and includable in the recipient’s income for tax purposes. However, if there was neither a valid Separation or Marital Settlement Agreement in place or a Judgement of Divorce as of Dec. 31, 2018, spousal maintenance will no longer be subtracted from the payor’s income and added to the recipient’s income on the federal tax return. This is true, even if there is a pending divorce action.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
