New Illinois Law Changes Guideline Formula For Spousal Support


 
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Law Addresses 2019 Federal Law Changes on Taxability and Deductibility Of Spousal Support Payments

Reconciles maintenance guidelines with the recently enacted federal law that repeals the alimony tax deduction for all new cases after January 1, 2019.

Under Public Law 100-923, effective January 1, 2019, any modifications to spousal support payments based on pre-2019 orders will continue to be treated as a deduction to the payor and as income to the recipient spouse. For divorce cases filed after January 1, 2019, spousal support payments will no longer be tax deductible to the payor and included as ordinary income to the recipient. The maintenance formula for new orders entered after January 1, 2019 will change from 30% of the payor's annual gross income minus 20% of the recipient's annual gross income to 33 1/3% of the payor's annual net income minus 25% of the recipient's annual net income, not to exceed 40% of the parties' combined annual net income. 

If you have questions about the impact of State or federal law on future maintenance obligations please contact Saxe Law LLC for a free consultation.