A divorce places financial strains on both parties. Sometimes there wasn’t enough money to cover all expenses when living together and now you need to determine how to survive on significantly less money. That’s where alimony comes in. Massachusetts enacted the Alimony Reform act in 2011. It established four categories of alimony:
- General Term Alimony
- Rehabilitative Alimony
- Reimbursement Alimony
- Transitional Alimony
The question isn’t just if you are eligible for alimony. That is just the first question. Then you need to determine which category you belong in. Then you look at how long and how much alimony you may be entitled to.
Alimony payments were always deductible by the payor and included in income by the recipient. With the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), that all changes. Now, alimony payments are not included in the income of the recipient and are still considered taxable income to the payor.
How the TCJA will affect alimony going forward is a work in progress. Alimony will still be awarded, it is up to the parties, with the assistance of counsel and even a financial analyst or accountant to determine what is the best avenue moving forward.
Damore Law can assist you.