If you and your spouse agreed to a divorce settlement in New Jersey before Dec. 31, 2018, the old rules regarding alimony, in which the recipient pays taxes on alimony, and the payer deducts it from his or her taxes, still apply to you. However, if you did not reach a settlement until after the first of the year, the provisions in the Tax Cuts and Jobs Act of 2017 now apply to your spousal maintenance arrangements. That means that if you are to pay alimony to your ex-spouse, you cannot deduct the payments, but if you are the recipient, you do not have to pay taxes on it.
To you (a most other in Essex County), alimony may simply be alimony. It is the money that either you or your ex-spouse will have to pay the other as a form of financial support. Yet this further highlights the incorrect assumptions that so many have about alimony. People often come to us here at The Law Office of Laurie A. Bernstein P.C. thinking that alimony is just another of punishing the spouse that makes more money by obliging them to support the other; rather, it is simply temporary assistance that ends once you or your ex-spouse secures gainful employment. As such, there are actually different types of alimony designed to fit the unique circumstances of your case.
Going through a divorce in New Jersey is not easy. It is often compounded by the financial strain it can put on you. This is especially true if in the process of the divorce the judge orders you to pay alimony. Luckily, this state has had some recent reform in this area. According to the official website for the state of New Jersey, the law changes on September 10, 2014, in regards to the length of time you have to pay alimony. Those who had court orders prior to the change date still follow the old rules unless there has been a modification to your agreement, you may follow the new guidelines.