781.708.4445

wmlevine@levinedisputeresolution.com

Divorce Mediation Blog

Dreaming About Alimony…

Wednesday, February 06, 2019

Levine Dispute Resolution Center - Alimony

In 2017, any waking person knew that Congress and the administration were furiously digging for ways to stem the flood of money out of the U.S. Treasury that they were about to cause by cutting corporate and top individual income tax rates. After all, “elections have consequences.”

In the fourth quarter, it became apparent that Congress had the alimony deduction – a longtime GOP target -- in its crosshairs. As a fiscal matter in context, its cost was marginal, but the decades-old subsidy for divorcing families offended some on moral grounds and compliance was poorly enforced by the IRS, causing greater treasury losses.

But, while the potential yield was small (see our August 15, 2018 post “Alimony and TCJA: Less A Misconception than a Worry…at www.levinedisputeresolution/divorce-mediation-blog/) but the target was rich: middle income and upper middle-class families – many professional – many Democrat – families with large tax rate gaps between spouses, where the alimony deduction helped most. (Low marginal tax rate families gained little from the alimony deduction while both spouses of the uber-rich donor class live at the highest rates, eliminating the value of leveraging family dollars with alimony.)

By December 2017, EVERYONE knew that Congress had repealed the alimony deduction, but had deferred the effective date of repeal by a full year, being effective January 1, 2019.

That’s when Massachusetts’ prominently specialized court, its sophisticated family law bar, financial expert cohort and state legislature all kicked into high gear, to buffer the impact of the family losses engineered by Congress that would soon impact a significant portion of their constituency…

… bar groups immediately conferred on how to press the state legislature to amend the Alimony Reform Act (eff. 3.1.12) in plenty of time to be sure that by January 1, 2019, the courts would have an alimony statute (initially based and passed on presumed deductibility) that is reconciled with the new reality that the federal deduction is gone…

… as they did so, the Probate and Family Court swung into action, setting up “listening” sessions in the various counties so that local practitioners and county bar associations could weigh in on their fears and suggested solutions…

… the court sought out the most prominent experts in the field to begin to come to grips with the economic impact of the lost alimony deduction on its constituent families…

… the court conferred with its judges to see how they might create common approaches to making sure that no one would gain unfair advantage by demanding windfalls for payors or payees, because of an ARA that was now out of sync with federal tax law…

… interest groups communicated to make sure that none of them would advocate for results that would unfairly advantage one side or the other because of the tax law changes…

… the court and various bar groups worked closely to make sure that a legislative fix would be put before the legislature in plenty of time for it to act before January 1st, so that everyone would hit the ground running with the understood goals of the ARA preserved despite federal action...

… the proactivity of the court, the bar and the interest groups led to a unified approach, a smooth glide path to the 2019 reality, so that predictability reigned, and the system didn’t miss a beat…

As I said, I was dreaming…

February 4, 2019’s Massachusetts Lawyers Weekly, Vol. 45, Issue No. 5, article, “Bar: need for alimony fix is urgent” recounts the efforts of the joint alimony task force to move a bill to the legislature with the simplest form of fix, the reticence of at least one interest group, silence from the court -- and as for the legislature – well, who knows. Per Lawyers Weekly, “…the effort is just now gearing up…”, with the horse well outside the barn

As I have asked lawyers in my divorce mediation sessions if they are seeing a common approach in the courts, they look at me like I am still dreaming.



Get e-mail notifications of new blog posts! Enter email address below.:



Delivered by FeedBurner

other articles


recent posts


tags

Massachusetts lawyers divorce process Massachusetts alimony Massachusetts MLB labor agreement LDRC alimony law Child Support Guidelines arbitrators Act Reforming Alimony in the Commonwealth how baseball arbitration works Obamacare Divorce Agreements Levine Dispute Resolution Center LLC COLA Massachusetts Alimony Reform Act disputes annulment litigation arbitration divorce litigation Chouteau Levine health coverage General term alimony Massachusetts divorce mediators family law arbitrator family support mediation Defense of Marriage Act family and probate law disputes IRC §2704 child support lawyer divorce and family law family mediation special master Baseball Players divorce arbitrators fraud divorce mediation family law mediation resolve disputes lawyer-attended mediation Baseball Arbitration support orders med/arb divorce judgment dispute resolution rehabilitative alimony SJC divorce agreement private dispute resolution Self-adjusting alimony orders pre-ARA alimony divorce mediator arbitrator Family Law Arbitration separation divorce lawyers Levine Dispute Resolutions Baseball health insurance traditional negotiations family law arbitrators alimony reform legislation alimony orders divorce and family law mediators Levine Dispute Resolution alimony statute The Seven Sins of Alimony Massachusetts divorce lawyers family law Boston Cohabitation lawyers alimony divorce mediations divorce mediators mediator high-risk methodology conciliation Divorce Major League Baseball Arbitration mediators facilitated negotiations self-adjusting alimony mediations divorce arbitration divorced med-arb Levine Dispute Resolution Center Massachusetts Lawyers Weekly divorce arbitrator medical benefits Uniform Arbitration Act Alimony Reform Act Matrimonial Arbitration Massachusetts alimony and child support DOMA Same Sex Marriage