Though the state of Virginia does not require alimony or spousal support as part of your divorce settlement, a judge may order you to pay support to your ex. If you are in the middle of your divorce proceedings, you may not mind agreeing to payments to speed up your divorce process. Or, you may concede to continued support for your spouse’s contributions to your marriage.
However, the implications of supporting your former spouse may weigh heavily on your budget, and the new tax law may only increase your concerns about how court-ordered alimony payments will affect you.
Changes in alimony tax deductions for the new year
Beginning Jan. 1, a new law will take effect, prohibiting you from writing off your alimony payments. Ultimately, without an agreeable alimony arrangement, this may have an impact on your expendable resources, without the ability to reduce your income on paper.
Your former spouse, on the receiving end of your alimony payments, will no longer need to include spousal support payments as income. While this may benefit him or her, your decreased deductions will likely increase your tax liability.
How you can protect your finances
As the primary earner in the marriage, you may want help figuring out an equitable agreement under the new laws. These changes may potentially make your soon-to-be ex may be more willing to negotiate lower alimony payments to help even out your financial situation.
It’s important to understand that to some extent your relationship may continue even after divorce. Yet, you still have rights. Keeping up-to-date on changes in alimony laws may help you protect your interests in your divorce settlement, and beyond.