Divorce & Taxes

Changes to tax laws.

Beginning on January 1, 2019, there are new regulations regarding the deductibility of alimony (known as spousal support in Louisiana).  For 70 years, when one party paid spousal support to another, the party paying the spousal support was allowed to deduct those payments from their taxes.  The party receiving spousal support was required to report the spousal support payments as income.  In 2019, this was flipped around.  Now, if a party is ordered to pay spousal support, they are not allowed to deduct it from their income.  Furthermore, the party receiving spousal support is no longer required to report that spousal support as income.

What does the change do?

This results in the tax burden in these cases being shifted from the receiving spouse to the paying spouse.  It effectively means that spouses who pay spousal support are now paying it with after tax income.

We know this law, and should take it into account when arguing for or against spousal support for you.

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