For those in Florida who are preparing to divorce, timing is a very important consideration, especially this year. Under the Tax Cuts and Jobs Act, spouses will no longer be able to claim alimony payments as tax deductions beginning in 2019. That means time is running out to take advantage of this important tax benefit. For some spouses, the ability to claim those payments as deductions makes a big difference in the bottom line each year.
Divorces made final before the end of 2018 will still follow the current rules, which allow those paying spousal support to claim those payments as tax deductions. Spouses who receive spousal support must claim those payments as income. After the first of the year, however, alimony becomes tax neutral, meaning the payments cannot be claimed as deductions and also will not count as taxable income.
Initiating a divorce now is critical to completing the process by the end of the year. Even a seemingly simple divorce case can encounter delays. Some of those delays are avoidable, while others are completely out of one's control. That's why it is so important to file now in order to be done before the end of the year.
For those in Florida who expect to pay alimony as part of an upcoming divorce, there is no time to waste. Schedule an appointment with a family law attorney today to get the process started, and to address and questions or concerns surrounding divorce and the new tax laws. Taking a proactive approach is the best way to reach a favorable outcome.