CHICAGO, Nov. 15, 2017 /PRNewswire/ -- The American Academy of Matrimonial Lawyers (AAML), an organization comprised of the nation's top 1,650 family law attorneys, today announced that it has approved a national resolution formally opposing Section 1309 of the House Ways and Means Committee's version of the Tax Cuts and Jobs Bill of 2017, which would ultimately end the income tax deduction for individuals who pay alimony.
"Alimony is an essential tool that has enabled countless spouses to adjust to a dramatically altered economic reality," said Madeline Marzano-Lesnevich, president of the American Academy of Matrimonial Lawyers. "The financial security provided to families by spousal support is a valuable resource that needs to be further strengthened and not diminished by our representatives."
In its resolution, the AAML concludes that this particular House effort to repeal the alimony tax deduction will directly impact a large number of divorces, particularly in middle-class and lower income situations, where there are often limited liquid assets to adequately provide financial security. As a result, a financially-dependent spouse may be discouraged or even unable to establish their own separate household, and could be trapped in domestic violence or an oppressive relationship because they cannot afford to leave.
In addition, the proposed repeal of the alimony tax deduction would eliminate a highly beneficial income-shifting effect. Alimony currently assists divorce-affected families to preserve some income by transferring dollars from higher tax brackets to lower tax brackets. The alimony tax deduction has historically helped to soften the adverse tax impact of ending a marriage, at least during separation, when "married, filing separate" tax rates suddenly apply.
The AAML Resolution Opposing Proposed Legislation To Repeal The Alimony Tax Deduction has been posted on the group's website at: www.aaml.org.
SOURCE American Academy of Matrimonial Lawyers