Swier Law Firm Founder and Managing Member Scott Swier is quoted in a recent Associated Press article. The article, "Exes and Taxes: How the Tax Overhaul Will Alter Alimony," reviews how Congress' tax overhaul is poised to reach virtually every corner of Amercan life - even divorce.
The article states, "Republicans delivered their sweeping plan . . . into law Friday. One provision scraps the 75-year-old tax deduction for alimony payments. The new rules won't affect anyone who divorces or signs a separation agreement before 2019."
The article then reports:
"Critics fear that without the deduction, higher-earning spouses won’t pay as much to their exes. New York City matrimonial lawyer Malcolm S. Taub foresees future alimony recipients losing 10 to 15 percent of what they’d get under the current law.
Lawmakers are 'taking money from people who’ve undergone the trauma of divorce, and they’re taking money from people at one of the worst times of their life,' he says.
Some prenuptial agreements have alimony provisions that assume the tax deduction, said Scott Swier, a South Dakota attorney. Some states might need to change alimony guidelines embedded in their laws."