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Alimony (Maintenance) Tax Deduction to end by 12/31/18!

Below is a link to a helpful article which specifies that the tax deduction previously allowable for maintenance (i.e., alimony) payments will end as of the end of the 2018 tax year.

That said, the article goes on to say that this creates big incentives for the more-monied spouse to wrap-up his/her divorce case (or at least the agreement resolving the divorce) by the end of the year.  It appears that the agreeemnts themselevs cannot shift the tax burden & thus it appears the IRS will not honor such settlements even if the parties aree expressly agreeing to have maintenancve deductible by the more-monied spouse (& thus includable as income to the less-monied spouse).

Bottom-line to the more-monied spouse: don’t delay settlements into 2019!

https://www.marketwatch.com/story/new-tax-law-eliminates-alimony-deductions-but-not-for-everybody-2018-01-23

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