Divorce in the News-Alimony and Tax Deductions

News FlashDivorce is Genetic?I don't believe it!-2

The Headline The Republican Tax Plan Imposes a New Divorce Penalty

As I understand it, a new tax law is about to be introduced.  As it stands now, and in my case, my Ex gets to claim his alimony as a tax deduction.  That never seemed fair to me.  I have to pay taxes on the alimony I receive, and he gets a benefit for paying alimony.  Wait a minute there is something wrong here!  My husband leaves me thus taking away my security, breaking a multitude of promises to God and me, damaging my family, and then he is rewarded for this breach of contract with a very nice tax break.  This is a miscarriage of justice in my opinion.  If this proposed law goes through it will go into effect at the end of this year and will include future alimony rulings.  The past judgments for alimony payments will not be included, and the slackers of the past can skip away with their high tax deductions.  Whoever said life was fair?

There is concern that this could affect the alimony payout amounts.  The worry is that the courts would consider the amount to be paid out along with the taxes that are no longer deductible thus decreasing the payout amount to protect the payor.  Well, that is not fair either.  The one who created the problem needs to pay out what he owes the one he or she has harmed.  I don’t think anyone worried that I would be paying taxes on the monies I would receive.  I don’t remember taxes on alimony ever mentioned in any of our legal proceedings.

So what is my hope with this new law, if it passes?  I hope the ones who cause damage to others do not continue to be rewarded for their behavior with huge tax breaks.  I hope the ones that have been lied to and harmed through the breach of marital contract get the money they deserve.  I wish that the government would not grandfather anyone in, but as my mom used to say “if wishes were horses beggars would ride.”
I would love to know your thoughts on this.
KathieyV

 

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Hi, I am a mom, nana, and writer living in the beautiful state of NC. I was married for 37 years and then blindsided by my husband, a former pastor. After decades he filed for legal separation without a word to me. It has been a rough road coming to terms with this new life that has been chosen for me. My blog is a place where I share "The Beginning," this place I found myself, a place I did not want to be. "The Journey," the things we need to do as we traverse this new road. Lastly "The Joy," and yes there is still joy to be found even after great pain. I have finished my first book "My Story My Divorce God's Promise, The Beginning." I am in the process of writing The Journey and The Joy. Please join me on my adventure to a new life. Always remember God's Promise "I will never leave you or forsake you."

2 thoughts on “Divorce in the News-Alimony and Tax Deductions

  1. “I would love to know your thoughts on this.” From the standpoint of the alimony payer, effectively the alimony payment has just increased by the marginal tax rate. Your assumption that the recipient of alimony was somehow wronged, which is what caused the divorce, may be true in some cases, may not be true in others, but is irrelevant to tax policy and is contrary to the intent of alimony: to keep ex-spouses with no income off welfare. “No-fault” is the key phrase; the courts don’t consider who’s the good guy and who’s the bad guy, they strictly look at who earns money and who doesn’t.

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