The recent federal tax law changes have a tremendous impact on spousal support, alimony pendente lite (APL) and alimony payments in Pennsylvania. Effective January 1, 2019, those payments are no longer deducted from the paying spouse’s income and added to the receiving spouse’s income for federal income tax purposes.
This change does not apply to spousal support, alimony pendente lite and alimony orders or agreements that were in effect prior to January 1, 2019. It does not apply to those orders or agreements even if they are modified after January 1, 2019.
This change does affect all new orders or agreements established on or after January 1, 2019. That includes all alimony orders or agreements that are effective after January 1, 2019, even if there was a previous spousal support or APL order or agreement in place prior to that date.
This can have a huge impact for some individuals and you should discuss the situation with your attorney and tax advisor before making decisions regarding spousal support, APL or alimony.
If you live or work in the central Pennsylvania area, including Carlisle, Harrisburg, Hershey and surrounding communities and would like to discuss the impact of this tax law change or any other family law or estate planning or administration issue, please contact me.