California Aligns with Federal Tax Law on Alimony: What SB 711 Means for Divorcing Couples

On October 1, 2025, Senate Bill 711 (SB 711) was signed into law, bringing California into alignment with federal tax law regarding the tax treatment of alimony (also referred to as spousal support).

For agreements executed on or after January 1, 2025, alimony is not tax-deductible for the payor and not taxable income for the recipient under both Federal and California law.

This change eliminates the prior mismatch between Federal and California tax rules and simplifies how alimony payments are treated for divorcing couples.

Understanding the Change

Historically, California and federal law were not always consistent in how alimony was taxed. SB 711 resolves this inconsistency moving forward.

Here’s how alimony is now treated under both systems, depending on when your divorce or separation agreement was executed:

• 2025 and Later Agreements
  For agreements executed on or after January 1, 2025, California and Federal law are now aligned. Alimony is not tax-deductible for the payor and not taxable income for the recipient.
• 2019–2024 Agreements
  During this period, Federal and California tax laws differed. Under Federal law, alimony is not tax-deductible for the payor and not taxable to the recipient. Under California law (before SB 711), alimony is tax-deductible for the payor and taxable to the recipient, unless agreed otherwise in writing.
• Pre-2019 Agreements
  For agreements executed before January 1, 2019, alimony is tax-deductible for the payor and taxable income for the recipient, unless agreed otherwise in writing.

What This Means for Mediating Couples

For couples in mediation, SB 711 simplifies financial discussions around spousal support by ensuring both state and federal tax treatment are now consistent. This alignment may also affect how support amounts are negotiated since tax benefits or burdens that once influenced the structure of support agreements are no longer a factor for new cases.

It is important to consult with a family law expert and qualified tax professional to understand how these rules apply to your specific circumstances.

Read the full text of SB 711 here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB711