Effective January 1, 2019, alimony awards in New Hampshire changed to the lesser of either reasonable needs of the payee spouse or 30 percent of the difference between the divorcing couple’s gross income. Thereafter, Congress changed the Internal Revenue Code to eliminate the deduction of alimony on the tax return of the paying spouse; payments are no longer considered a tax deduction and alimony received is no longer considered taxable income. As of July 9, 2022, the 30% is reduced to 23% under state law. After reviewing alternate formulas over the range of incomes with the help of divorce financial analysts, the Alimony Working Group concluded that 23% of the difference in gross incomes under the new tax law produced similar results to 30% of the difference under the old federal tax law. If you are currently paying alimony in an amount that is greater than 23% based upon an order that was issued on or after January 1, 2019, then you have the right to seek a modification without having to demonstrate an unforeseen change in circumstances. However, any requests to modify based upon this provision must be filed on or before July 1, 2022. This corrective alimony legislation would also clarify that the 2019 alimony reforms apply only to divorces and legal separation petitions filed in January of 2019 forward. Although the original bill said that the alimony reforms would apply only to new cases, some successfully argued to apply it to brought-forward cases (cases prior to 2019) as well, which lent to the new law that also provides a window for people with alimony orders effective on or after January 2019 to request modification of the amount of alimony set in their case. The window would be open for any orders amounting to more than 23% of the difference in gross incomes. Any requests for modification must be made by July 1, 2022.  If you have inquiries regarding alimony and the tax effects applicable to your case, call HLG for a free 30 minute consultation. We are happy to help you.