When Ohio spouses decide to end their marriages, they often encounter challenges regarding financial issues, including alimony. Many people throughout the state pay spousal support when they divorce. New tax laws enacted for 2019 have tax implications for those who pay or receive this type of support.

Prior to such laws taking effect, those who pay spousal support have been able to claim the payments as deductions on their federal income tax forms. The new tax laws rescind the deduction. Those who receive alimony, who have previously had to claim it as income, will no longer be required to do so.

Since spousal support payments will no longer be subsidized by the U.S. government through tax deductions, it is likely that people will want to fight for lower payments, since they will no longer be getting a corresponding tax benefit. This, in turn, may cause those looking to receive alimony to request higher payments, thus potentially prompting many contentious situations. For those who are already adhering to existing court orders entered prior to the new laws taking effect, if they seek modifications once the new system is in place, it is possible that the new rules may apply.

Ohio residents who have signed prenuptial or postnuptial contracts will want to have their agreements reviewed by someone well-versed in family law, especially as it is affected by the new tax laws, as some items contained in their agreements may be affected. Anyone preparing for divorce in the new year is wise to learn as much about the new tax laws ahead of time as possible. Requesting a meeting with an experienced divorce attorney is typically the preferred way to obtain information.