Prenuptial Agreements and The New Tax Law – How Mediation Can Help



The message for divorcing couples is clear.  If your divorce agreement will include provision for the payment of alimony, deductible to the paying spouse and taxable, as income, to the recipient spouse, you need to have an executed divorce agreement by December 31, 2018.  Beginning in 2019, the tax treatment of alimony, in effect since 1942, will be upended.  Spouses paying alimony will no longer be entitled to deduct their payments and spouses receiving alimony will no longer be taxed on the income. 

For couples where a prenuptial agreement was created prior to the new tax law, a post-nuptial agreement may be in order to address the new tax law and the treatment of alimony in the event of a divorce.

Mediation offers the forum of choice for couples dealing with the crafting of, or the revision of, pre-­-nuptial and post-­nuptial agreements.  An experienced and skilled mediator helps couples to focus on their objectives and priorities without the rancor of conflict.

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