The formula created to determine the New York spousal support (maintenance) guidelines was created assuming that the support calculated would be fully taxable to the payee and deductible to the payor. Two years after the implementation of this formula, the federal government passed a law that spousal support in all 50 states would no longer be a taxable event (e.g., such payments would no longer be taxable nor deducible). Yet, New York state has not revised its formula to account for this change. This is significant because this change in law could theoretically increase or decrease the support amount under the formula by 50%. This article will examine what, if anything, should be done about this change.
The purpose of post-divorce spousal support determined by a court is to “balance the effects of divorce by examining the earning capacity and future needs of each spouse and by providing financial support to the spouse who is more economically dependent.” Jennifer L. McCoy, Spousal Support Disorder: An Overview of Problems in Current Alimony Law, 33 Fla. St. U. L. Rev. 501, 502 (2005). Currently, 45 states have statutes in effect to provide this type of support (see Justin T. Miller, Tax Reform Could Make Divorce a Whole Lot More Taxing, ABA, Oct. 11, 2019), yet the statutes differ in both the types of support awarded and the factors courts look at to determine the length and amount of support.
