When President Donald Trump signed the Tax Cuts and Jobs Act into law a few months ago, it made it where come Jan. 1, 2019, alimony will no longer be able to be taken as a deduction on a paying spouse's taxes. It also made it where the recipient wouldn't have to pay taxes on those funds anymore either. What many haven't heard about though is how the new law allows paying spouses to continue taking a tax break.
The employment of spousal support, also referred to as alimony, occurs in cases where it’s necessary to even the economic playing field while the couple adjusts to life apart. If a couple cannot agree to terms of spousal support, determination about eligibility and amount are at the discretion of the Michigan court system. The amount of spousal support allowed is based on a wide variety of factors.