Why Lawyers Predict A Wave Of Divorce This Year

Taxes make the world go round. An alimony deduction to be erased in 2019 under the new tax plan has lawyers gearing up for lots more divorces this year. Right now alimony payers receive a tax break on alimony, while recipients have to pay income tax on the payments. But after December 31st of this year, alimony will no longer be deductible for the payer, and recipients won’t need to pay income tax on it. Attorneys predict the change will complicate divorce negotiations and lead to more cases being heard in court, with some adding that women will be disproportionally hurt by it. Politico reports removing the deduction is expected to raise $6.9 billion over the next decade and help offset the cost of tax cuts outlined in the G-O-P bill. (Newser