Changes in NJ Alimony

“Beginning in 2019, the spouse who pays alimony will no longer take the alimony payments as a tax deduction,” notes Larry J. Nagy, Of Counsel for Radom & Wetter, Attorneys at Law.

At the same time, the spouse who receives the money no longer includes the alimony as income.

Divorce agreements prior to 2019 will be grandfathered under the old rules, meaning that earlier dates (prior to Dec. 31, 2018) will continue to receive a deduction for any alimony paid and the recipient will continue to declare the alimony as taxable income.

Subsequently, individuals negotiating a divorce settlement should adjust their position based on the potential tax ramifications.

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