As part of the tax overhaul passed last year, a major change is coming to alimony. Effective January 1, 2019, alimony in all newly granted divorces will be taxable to the paying party, rather than the receiving party.
Alimony is only awarded in a divorce or legal separation. Most often, alimony awards are part of a divorce decree. Whether a person will be awarded alimony or not depends on a long list of factors, but most importantly:
- The length of the marriage
- How much income each person will or should be able to earn after the divorce
- What assets each party will have after the divorce.