June 21, 2018

Getting divorced and expect to pay spousal support? You have until June 29, 2018 to do this.

alimony money

 

Under the new Tax Law, alimony, or spousal support, is not deductible for tax purposes by the payor for divorce decrees entered after December 31, 2018.

In California, there is a statutory six-month waiting period to finalize your divorce from the time your spouse is served with the divorce pleadings.

IMPORTANT: Accordingly, next week, specifically June 29, 2018 at the very latest, is the last possible day to serve divorce papers on your spouse if you want to be grandfathered into the old tax laws and hopefully have your divorce finalized and entered before the end of the year.

PLEASE NOTE: Serving your divorce papers by next week, does NOT guarantee you will be divorced by the end of the year, but if you hope to be divorced by the end of the year, you need to act IMMEDIATELY.

IMPORTANT: Under the new tax laws, a payor spouse can only afford to pay approximately half of the spousal support they would have been able to pay under the old tax laws.  This may be particularly important for payee spouses to know.

You need to speak with a family law attorney who also practices tax law immediately if you believe the new tax law will affect you.  If you are concerned about the timing, we can advise you on some other strategies, such as hiring a private judge, to improve your chances of making the deadline.

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.