2019 alimony changes

if I am legally separated prior to December 31, 2018 am I grandfathered in to the current tax law concerning alimony and exempt from the changes starting on January 1, 2019

No, unless you already have a separation agreement or court order that addresses alimony.

The new tax law in regard to alimony is effective only for alimony documents (i.e. separation agreement or court order that address alimony) that are executed after 12/31/18 or existing documents that are modified after 12/31/18. If you already have the issue of alimony resolved in a separation agreement or court order, then the old tax law applies to wherein alimony is deductible to the payor and taxable to the recipient.

For more detailed information on this subject, check out our article The Impact of 2018 Tax Code Changes on Alimony.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

thank you for your reply. if terms of a separation including alimony can be agreed upon by both parties is it possible for a separation agreement to be on the books by December 31,2018 to qualify for the exemption?

Yes, as long as the separation agreement is fully executed by both parties (i.e. signed and notarized by Husband and Wife) on or before 12/31/18, then the “old” alimony laws apply where it is deductible to the payor and taxable to the recipient.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.