The passing by the House of Representatives and the Senate of their respective tax reform bills has certainly been headline news over the past month. President Trump, Representatives and Senators on both sides of the aisle have provided sound bites on the reform.  What has been significantly overlooked by the mainstream media (at least in the opinion of a divorce attorney) is the proposed changes to alimony.  Under the current tax law alimony paid by one spouse to the other is deductible by the spouse paying alimony and includable in the gross income of the spouse receiving the alimony.  This has been the law for decades.  Under both versions of tax reform bill this would no longer be the case.  Alimony would not be deductible by the payor spouse.  Nor would it be included in the payee’s income.  The tax impact on the parties could be significant.  Fortunately, it appears that parties who were divorced prior to the end of 2017 will be grandfathered in under the current law.  However, moving forward the new tax law will certainly have an impact on alimony negotiations between parties.  Additionally, there are many other potential changes in tax reform bill, including changes to the tax brackets and allowable deductions.  It is likely that not only alimony, but child support will need to be reevaluated based upon the new tax reform bill if it becomes the law of the land.  We at Iandoli & Edens, LLC will be following the status of the tax reform bill closely in order to serve our clients.  If you have any questions about the divorce process, please call Iandoli & Edens at 908-879-9499.