We answer a number of questions regarding alimony (also commonly called spousal support/maintenance) on our website at the Arkansas family law blog of Robertson, Oswalt, Nony & Associates.
One of those relates to its very existence. We note, for example, that, “Many people believe that [alimony] does not exist in Arkansas, but this is simply not true.”
It does, indeed, and state judges have broad discretion in their rulings concerning its award in certain instances. There are, in fact, several types of alimony, which an interested party can discuss with an experienced divorce attorney.
Unsurprisingly, alimony can make for a complex topic in any given Arkansas divorce. And, notably, that complexity might just increase in the wake of major legislation that was proposed in the U.S. House of Representatives late last week.
If Republican Party authors have their way, there could be a major change to spousal support by as early as this Christmas.
And that is this: no more tax deduction for the ex-spouse paying it.
As a national news article on this major potential change to alimony states, it is the tax-avoidance factor of alimony payments that has “made them easier to stomach for the divorcees paying them out.”
It bears noting that the proposed bill is nowhere near done-deal legislation currently. To become law, it must first clear hurdles in both the House and Senate, and then be signed by President Trump. The president firmly supports the change.
If the no-deduction law does pass, it is slated to affect divorces that will be finalized from next year.