Clement Law Center - Federal Way Family Law Attorney
Free Initial Consultation
253-336-3607
Our office is open. At Clement Law Center, the safety and wellbeing of our clients and employees come first. In response to COVID-19, court hearings and all conferences with client and prospective clients will be by phone. We are not conducting in-person court hearings or meetings. Our staff will often be working remotely during this time. Our office will be checking voicemail and will return client calls as soon as possible. We continue to offer free phone consultations.
We offer a 25% discount to First Responders and Health Care Workers
bg-banner-blog
Quality Representation & Individualized Advocacy You Can Depend On

How does the new tax law affect alimony payments?

| Mar 10, 2019 | Uncategorized

Many people with high-paying jobs, such as those in the technology sector, must think about the financial consequences of divorce.

For example, the new Tax Cuts and Jobs Act reverses existing legislation concerning alimony payments. If you are about to end your marriage, how will this affect you and your soon-to-be ex-spouse?

What changed

The law that stood for 77 years allowed the party paying spousal support to take a tax deduction while the party receiving the alimony payment had to pay tax on it. Now that the new law is in effect, the payer can no longer claim a tax deduction and the payee no longer has to pay tax on the amount he or she receives each month. However, in the absence of a tax deduction, less money may be going to the payee. In fact, some spouses may balk at having to pay any alimony at all, a stance that could also impact payments for child support.

Temporary spousal maintenance

In the state of Washington, the court does not look kindly on permanent spousal maintenance. It favors the concept of temporary spousal maintenance because the amount determined is based on the needs of the payee. For example, a payee who left the workforce to raise the children would receive alimony until such time as he or she is able to find a job and become self-sufficient.

Calculating divorce expenses

If the higher-earning spouse elects not to pay alimony, the divorce could become contentious and the parties bitter. The average cost for couples who opt for traditional litigation is more than $19,000. A faster, less stressful and more economical solution is a collaborative process with average costs coming in at $14,500 per couple. Of course, sometimes alimony is not a consideration in a divorce, but if it is, couples should become educated about the new tax law and the effect it will have on their financial future.

Start Your Free Consultation

Our Office Locations

Federal Way Office
31919 1st Avenue South, Suite 103
Federal Way, WA 98003

Toll Free:888-351-6779
Phone: 253-336-3607
Fax: 253-815-8458
Federal Way Office Location

Seattle Office
3418 NE 65th St., Suite A
Seattle, WA 98115

Toll Free: 888-351-6779
Phone: 253-336-3607
Fax: 253-815-8458
Seattle Office Location

Bellevue Office
14777 NE 40th Street, Suite 206
Bellevue, WA 98007

Toll Free: 888-351-6779
Phone: 253-336-3607
Fax: 253-815-8458
Bellevue Office Location
FindLaw Network