How does the Tax Cuts & Jobs Act impact spousal support?
Starting in 2019, it's the paying spouse who now has to pay taxes on those funds. It goes tax free to the receiving spouse. Now, that has caused quite a bit of interest in family law overall, because spousal support awards, when they were tax deductible to the paying spouse was, say, 30% net less. Now they have to pay taxes on those funds, which makes settling some of these issues a bit more difficult. With the advent of the new tax code, it's important to talk to your family law attorney, perhaps a CPA, to see how that's going to impact your income and your net budget monthly, depending on what your spousal support award is.