Now that the holiday season is well behind everyone, it is not uncommon for Pennsylvania couples to make the decision to end their marriages. Many people who have challenging marriages make the conscious choice to at least make it through the busy winter holiday time and then deal with their marital issues. For some, the holidays may be a time to reignite their marriages. For others, it is a time that confirms the decision to get divorced.
If you are in that latter category, you will want to get educated on how the new tax law might impact you if your divorce is not completed until 2019. CNBC explains that if you might be ordered to pay spousal support, you will want to figure in that you will not only lose income in the form of alimony payments but also in taxes on that money. If you are the spouse who might receive alimony payments, you will not be required to claim that money as income.
While the change sounds like it might be good for people who would receive alimony, that is not necessarily the case. What may end up happening is that divorce settlements might result in lower alimony awards to begin with. This may result in both spouses feeling the ramifications of the tax changes.
If you would like to learn more about how to evaluate the tax implications for you of a potential alimony award before you get divorced, please feel free to visit the spousal support and taxation page of our Pennsylvania divorce and family law website.