Michael Beyda speaks with CNN Money on alimony payments being separate from child support.
CNN Money: Alimony payers lose tax deduction under GOP bill
CNN Money explains that alimony payments, typically codified in the terms of a divorce settlement, are separate from child support. They are the payments that someone gives to an ex-spouse who earns less money. If the tax bill becomes law, the alimony deduction repeal would affect divorces carried out after December 31, 2018. The new rule wouldn’t affect anyone already paying alimony.
Michael Beyda, New York-based divorce attorney says, “It’s not just future divorces that will be affected by the tax deal — couples working out prenuptial agreements should take heed.” He also said prenuptial — and postnuptial — agreements typically contain clauses that outline what alimony would look like should the couple get divorced. Until this point, those clauses have typically been drafted assuming the alimony tax deduction will be in place.
CNN Money explains that alimony payments, typically codified in the terms of a divorce settlement, are separate from child support. They are the payments that someone gives to an ex-spouse who earns less money. If the tax bill becomes law, the alimony deduction repeal would affect divorces carried out after December 31, 2018. The new rule wouldn’t affect anyone already paying alimony.
Michael Beyda, New York-based divorce attorney says, “It’s not just future divorces that will be affected by the tax deal — couples working out prenuptial agreements should take heed.” He also said prenuptial — and postnuptial — agreements typically contain clauses that outline what alimony would look like should the couple get divorced. Until this point, those clauses have typically been drafted assuming the alimony tax deduction will be in place.
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