The way spousal maintenance is calculated in a divorce or legal separation is likely going to change. Right now, spousal maintenance counts as income for the party receiving it, not for the party paying. However, the new tax law that was passed by Congress changes this for any divorce or separation agreement executed after December 31, 2018. If you are receiving spousal maintenance, this amount will no longer count as your income for tax purposes. If you are paying maintenance, the amount you pay will count as your income.
When Colorado’s statutory guidelines for spousal maintenance were created, spousal maintenance counted as income for the party receiving it, not the party paying. With the change to the way these amounts are taxed, there may also come further changes to the way spousal maintenance is calculated.
This is a big change to the current law and it is not clear how it will play out, or what the final effect will be. If you have questions about how this may affect your spousal maintenance order, current case, or future case, feel free to contact Stephanie Shannon Law to schedule a free 30-minute consultation.