How Does the new Tax Legislation Change Utah Alimony?

In late 2017, President Trump recently signed a new tax legislation.

It is, perhaps, the largest change in the tax system in a generation.

Some of the tax changes will directly affect Utahans who divorce and pay alimony.

Let’s focus what is most likely the most substantial change: doing away with the tax deduction for those who pay alimony.

The Way it Is Now

As it stands right now, people who pay alimony to their ex can deduct the amount of alimony paid on their taxes, thereby lowering their tax bill.

Conversely, the spouse that receives alimony must report the amount of alimony received as income on their taxes.

The Way it Will Be Under the new Tax Legislation

Under the new legislation, the spouse paying alimony cannot deduct alimony paid on taxes.

Conversely, the spouse receiving alimony does not count alimony received as income on taxes.

What Does this Mean?

The practical effect of this is that if you pay alimony, you’re going to pay higher income tax and have less money.

And if you receive alimony, you’re going to have a lower tax burden and receive an overall greater amount of money.

(If you want to know exactly what the difference will be between the present system and the new system, meet with your accountant to run numbers.)

When Will things Change?

The change to alimony under the new tax legislation applies to divorce decrees executed after December 31, 2018.

If you execute a divorce decree before December 31, 2018, your decree will be grandfathered in, which means the current way of determining tax will apply.

So, if you want your divorce decree under the tax system as it stands today, make sure you get everything done and signed before December 31, 2018.

Protect Your Money And Your Family

We remove fear associated with divorce, protect your money & maximize time with your kids!

We're here to help. Let's determine your best options.

Call Us 24//7 at 801-685-9999 to Speak with a Live Representative

Utah Divorce FAQs
Top 100 Divorce Blog
What Clients Are Saying…
Brown Family Law
Based on 803 reviews
They handled my case with the highest degree of professionalism and integrity and made every effort to be efficient and transparent with me throughout the whole process. I was told that they were the best as far as family law is concerned and I believe that praise was fully justified.
Amber McFee is always professional and great to work with. Being opposing counsel by nature is adversarial, but Amber is professional in approach while effectively advocating for her clients. She will treat you right!
Response from the owner: Thank you, Jonathan.
Overall from start to finish the best experience to have dealing with a time that is difficult.Andrew Christensen is very professional and out going to make this situation the best it could be and worked hard to make sure the divorce was fair for me.Over all, this firm really cares and treats you as a family or friend and just not a client, down to Marco Brown taking time to see how I was doing and offer to help in any way possible during my divorce while I was there for my first initial meeting.I would highly recommend anyone that has to go through a divorce to really reach out to the Brown Family Law firm and see for your self the experience I was able to receive from a top notch law firm.
Response from the owner: Devin, thank you for the kind words. Andrew appreciated the opportunity to help you with your situation.
Sophie was very helpful and explains the process and fees. Thank you!
Response from the owner: Corey, thank you for the kind words. Glad we could help.
Dani always kept me updated and has great communication skills.
Response from the owner: Thank you, Sofia.
Dani was extremely helpful and always responsive.
Response from the owner: Glad Dani did well for you.
My experience with Brown Family Law is a positive one. I highly recommend them. This firm has very good communication with their clients. Attorney Paul Waldron represents me and I’m very happy with the experience. My questions and concerns are always answered quickly and respectfully. I’m grateful to have Mr. Waldron and Brown Family Law in my corner during this difficult time for my family.
Response from the owner: Jodie, glad we were able to communicate with you so effectively and quickly. Thank you for your kind words.
I recently used Clay in a divorce case and could not have been happier. He was efficient, knowledgeable, and made me feel like I was his only client. The process was easy and he was always there to reassure me or help me with decisions. I would highly recommend Brown Family Law.
Response from the owner: Thank you, Mendi.
Dani excelled as a paralegal, providing crucial support with exceptional skills!
Response from the owner: Glad Dani did such a good job for you.
Thank you So much
Response from the owner: You're welcome. Thank you for choosing us to help you.


Related Posts