New Tax Rules Make 2018 “The Year of the Divorce”
{4 minutes to read} Breakin’ up is not just hard to do—it’s often expensive. But for the past 75 years or so, alimony has been deductible for the payor and income to the payee. This often helped soften the economic fallout of divorce by allowing the higher-earning spouse to pay alimony to the lower-earning spouse so the “family” could reduce its overall tax burden. Since child support is neither income nor deductible, couples often agreed to allocate more money to alimony and less to child support to increase the overall pot available to the family post divorce.