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Make Me Smart with Kai and Molly

Episode 114: Antitrust the process

May 21, 2019

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How the GOP tax plan changes the alimony equation

Mitchell Hartman Nov 6, 2017
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The Republican tax plan would change alimony from something that is treated favorably for the people who have to pay it to something that is more of a tax burden. That’s because alimony payments would no longer be deductible from income on the payer’s tax return. The change could make divorce settlements more difficult to achieve. On the flip side, the ex-spouse who receives alimony would no longer have to pay income tax on that money. But that probably wouldn’t erase the financial disadvantages of divorce for women — about a quarter of women see their standard of living decline after divorce.

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