Why Prenuptial Agreements Drafted Prior to 2019 Are in Jeopardy

New York & New Jersey divorce lawyer Paul Goldhamer, Esq. is a co-founding partner at the law firm of Kantrowitz, Goldhamer & Graifman. When not practicing matrimonial and estate law in NY & NJ, Mr. Goldhamer packs a busy schedule with charitable efforts, lecturing, TV & radio appearances and more. Paul was named a “Super Lawyer” by Superlawyers.com in 2014.

From Paul Goldhamer, Esq.:

Prenuptial Agreements & the Tax Law Change:

Prenuptial Agreements drafted prior to 2019 are in jeopardy. The deductibility of Spousal Support payments are in question.

It is common in prenuptial documents for lawyers to insert language calculating alimony (or Spousal Support) and stating the alimony payments are deductible by the Payor.

But the Tax Law has changed. Alimony or Spousal Support is no longer tax deductible after Dec. 31st, 2018.

Lawyers cannot know whether these clauses will hold up in 2019 and beyond. On one hand, you have a written contract, but can you count on its validity? Without a court ruling, or direction from the I.R.S., the deduction might not be valid if alimony is no longer deductible. A married couple might want to consider renegotiating the agreement, even if it might be a tough conversation.

Call Kantrowitz, Goldhamer & Graifman. We know how to fix this.