By: Jessica A. Saldin
Starting August 8, 2018, there will some statutory changes being made to the Colorado Uniform Dissolution of Marriage Act (the main statute/law that governs Colorado divorce and custody cases). As these changes may have major impacts on your divorce or custody case, it is important to know what they are. A few of the statutes are undergoing minor word changes, which are not being discussed in this article. The major changes, which will be the primary focus of this article, affect the statutes governing spousal maintenance and child support.
C.R.S. 14-10-114 is the statute that governs maintenance (often called spousal support or alimony). As discussed in a prior blog post, the federal tax code is changing in 2019, with an impact on how maintenance payments are treated for tax purposes. It used to be that a payor’s maintenance payments were tax deductible to the payor and a recipient’s maintenance payments had to be claimed on the recipient’s taxes as income. Starting in 2019, the recipient will not have to declare maintenance payments as income; however, the paying party will not get a deduction for maintenance paid. As mentioned in the prior post, such was anticipated to have an effect on Colorado’s maintenance law because the formula was created with the understanding that maintenance would be tax deductible and taxable, respectively. As anticipated, the Colorado legislature has made changes to Colorado’s maintenance law to account for these federal tax changes. Continue reading