May 29, 2018

Spousal Support Considerations After the Tax Cuts and Jobs Act – Does California Conform?

portrait of gesticulating girl talking with psychologist

 

As you likely already know, after the Tax Cuts and Jobs Act (TCJA), alimony will not be deductible for the payor spouse, or reportable as income to the payee spouse, for divorce decrees entered after 2018.

But what about California, do these new rules still apply?

California does not conform to the new laws, and it will still allow a deduction for spousal support payments, and require a payee spouse to report the spousal support as income.

Because California will still allow payor spouses to deduct spousal support payments, divorce decrees must still meet certain requirements.

For example, the payment must be made in cash or cash equivalent; the payment must be made incident to divorce; the parties must not have designated that the payment was not spousal support; the payment must not be treated as child support; as well as other requirements.

Most divorce lawyers are not qualified to advise you on the tax matters surrounding divorce.

If you have questions about the foregoing, or any tax matters relative to your divorce, please reach out to a lawyer at our firm who is qualified to speak to you about both family law and tax law related matters.

Mendes Weed, LLP is here to help you if you have any questions.  (925) 390-3222.

 

The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.