May 20, 2019
All divorces finalized prior to Jan. 1, 2019, became grandfathered into this tax situation.
The 2019 changes in the code
As of Jan. 1, spousal support is no longer taxable on either end. For the payer, this means it stays a part of the calculation of income, placing him or her into a higher bracket. The amount of money the payer now has to spend in taxes throws a wrench in negotiations.
Likewise, the change may seem to benefit the recipient since it is no longer taxable as income. However, with more of a reluctance to settle spousal supportpayments at a higher rate, it may wind up costing the recipient more in the short and long run.
Disparate incomes linked to divorce