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Diana Shepherd (CDFA™®) on How Spousal Support Works
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The US has treated spousal support as taxable income to the recipient and tax-deductible for the payor for the last 75 years. However, the new Tax Cuts and Jobs Act scraps this deduction for anyone who signs a separation agreement or gets divorced after 2018.
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No two divorcing couples have identical circumstances, but one potential source of income (or expense) for many divorcing people will be spousal support – sometimes known as alimony or maintenance. The standard is to give support to the spouse who needs it in order to keep the family on an equal setting – however, there is an underlying duty for each spouse to work towards being independent of each other.
Diana Shepherd (CDFA™) is the Editorial Director and Co-Founder of Divorce Magazine. An award-winning editor and published author, she is a nationally-recognized expert on divorce, remarriage, finance, and stepfamily issues.
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