A tax policy related to divorce and in place for seven decades will end at the end of this year as part of the federal tax overhaul of 2017. For divorces after Dec. 31, those who pay spousal maintenance can no longer deduct alimony payments from their taxes. Also, maintenance recipients will no longer declare alimony as taxable income. 

Because this change to the tax code is expected to reduce the amount of money divorced couples have on hand to split between them, divorce lawyers say they have seen a noticeable increase in filings as the year-end deadline approaches.

How Alimony Works with New Law

The U.S. Supreme Court ruled in 1917 that alimony was not tax deductible, a rule that changed in the 1940s. The new law will pay a small portion of the $1.5 trillion in tax cuts scheduled over the next decade, with $6.7 billion added to the U.S. Treasury.

In divorce, spouses sometimes require an additional influx of income supplied by their ex-spouse as they restart on their own. In Illinois divorce cases, this was once referred to as alimony or spousal support but is now called spousal maintenance.

During the divorce process, spouses who will pay maintenance and those who will receive it often wonder what amount they can expect. Starting January 1, 2019, a change in Illinois law will impact that figure. To ensure you either receive or pay the justified amount, you need a skilled family law attorney, like those at Anderson and Associates, P.C., who can serve as your advocate throughout your divorce proceedings.

Here is a look at how spousal maintenance will be figured starting at the beginning of next year: