Alimony payment tax rules are changing

If a divorce is in your near-future plans, consider the new tax treatment for those agreements finalized after Dec. 31, 2018. All agreements finalized in 2019 will no longer be taxable or deductible. This means the person receiving the alimony won’t owe taxes on the income and the person paying the alimony can’t deduct the expense.

This change does not affect agreements with alimony considerations in place before Jan. 1, 2019, but current agreements revised in 2019 may be affected.