If you’re sitting at your kitchen table in El Cajon, staring at a spreadsheet and trying to figure out how much alimony (spousal support) you’re going to pay or receive, I have some news. Depending on which side of the checkbook you’re on, you might want to grab a coffee: or something stronger.
As of January 1, 2026, the rules of the game in San Diego County have officially shifted. The California Conformity Act, also known as SB 711, has finally bridged the gap between state and federal tax laws regarding alimony. While "tax conformity" sounds like a cure for insomnia, it’s actually a massive deal for your wallet. If you are looking for a family law attorney in El Cajon, CA, you need someone who understands that the old math is officially dead.
What exactly is SB 711 and why should you care?
For years, California was the "weird" state when it came to alimony taxes. Since 2019, the IRS has said alimony is "tax-neutral": meaning the person paying it doesn't get a deduction, and the person receiving it doesn't pay taxes on it. But California decided to do its own thing. Up until the end of 2025, California still allowed the payor to deduct alimony on their state taxes, while the recipient had to report it as income.
SB 711 changed all of that. Starting January 1, 2026, California state taxes now align perfectly with federal rules for all new agreements.
Here is the "insider" breakdown of the new reality:
- For the Payor: No state tax deduction. Every dollar you send out is "after-tax" money.
- For the Recipient: No state tax bill. Every dollar you receive is yours to keep.
- For the Negotiators: The "tax arbitrage" trick is gone.
This matters because alimony negotiations in San Diego County used to rely on a "tax-sharing" benefit that no longer exists. If you’re working with a family law attorney in El Cajon, you need to realize that the "pie" we are dividing just got a little smaller because the state is no longer subsidizing the payments through deductions.
Why is the 2019–2025 "Split Treatment" finally ending?
Between 2019 and 2025, we lived in the era of the "Split Treatment." It was a headache for accountants and a source of confusion for divorcing couples. You’d have one set of numbers for your federal return and a completely different set for your California return.
Payors loved this era because they could still shave about 9% (the average California tax bracket for many) off their state tax bill. It made writing that monthly support check feel a little less painful. Recipients, on the other hand, had to set aside a portion of their support just to pay the Franchise Tax Board.
SB 711 simplifies the paperwork, but it complicates the negotiation. Now that the state deduction is gone for new cases finalized in 2026, the person paying the support is feeling the full weight of the payment. This is why you’ll likely see a shift in how much is being offered on the table.
Will you see an 8-10% decrease in support amounts?
In reality, most experts (including us) expect to see alimony amounts drop by about 8% to 10% in new San Diego County divorces. Why? Because the payor no longer has that state tax "cushion."
When we run support calculations using tools like DissoMaster, we look at "net disposable income." Without the state tax deduction, the payor’s net income drops. To keep things equitable: and to ensure the payor can actually afford their own rent in San Diego: the gross amount of alimony usually has to come down.
If you are the recipient, don’t panic. While the gross number might look smaller on paper, you aren't paying taxes on it anymore. You might receive $2,700 tax-free instead of $3,000 that you’d eventually owe $300 in taxes on. It’s the same "net" result for you, but it changes the psychological dynamic of the negotiation.
How does this affect San Diego County divorces in 2026?
If your divorce was finalized in 2024 or 2025, you are likely "grandfathered" into the old system: unless you modify your agreement. But for everyone else currently in the thick of it, SB 711 is your new reality.
In San Diego County courts, judges and mediators are already adjusting to these "pure dollar" negotiations. We are moving away from "tax sharing" and moving toward "cash flow reality." This is especially true in El Cajon and surrounding areas where middle-class families are already stretched thin by the cost of living. Every percentage point matters.
If you’re feeling overwhelmed by these changes, you aren't alone. It’s a lot of math to handle while you’re also trying to navigate the emotional weight of a divorce. You can reach out to the Law Office of Andrew H. Griffin, III, APC at 619 853-3009 or visit our contact page to talk about how this law affects your specific numbers.
Why you need a "Big Picture" attorney for these negotiations
This is where things get interesting. Because alimony is now tax-neutral, we are seeing a major trend: Property Division Offsets.
Instead of paying $3,000 a month for five years with no tax benefit, many payors are now asking to give up a larger share of the house or a retirement account instead. They’d rather take a hit on assets now than lose "expensive" after-tax cash every month for years.
This is why our firm's unique background is such a massive advantage. Andrew Griffin isn't just a family law attorney in El Cajon; he is also a dual-licensed California Real Estate Broker.
When you’re deciding whether to take $50,000 more in home equity in exchange for waived alimony, you need an attorney who understands the real estate market and the tax code. Most lawyers can read a support calculator; few can accurately project the long-term value of a property offset in the San Diego market.
Does this affect existing alimony orders?
You might be wondering, "I already have an order from 2023. Do I have to change it?"
The short answer is no. Existing orders typically stay under the rules that were in place when they were signed. However, if you go back to court to modify your support: perhaps because someone lost a job or got a big promotion: SB 711 comes into play.
In a modification, you and your ex-spouse can actually choose to opt into the SB 711 treatment. This can be a huge bargaining chip. A recipient might agree to a slightly lower monthly payment if the payor agrees to make it tax-neutral under the new law. It’s all about leverage, and you need an "insider" who knows how to use it.
Notes for Business Owners in San Diego
If you own a small business in El Cajon or San Diego, SB 711 hits differently. Your "income" is often a mix of salary and draws, and your tax situation is already complex. Since alimony is no longer deductible at the state or federal level, it effectively increases the "cost" of your divorce. You are paying your ex-spouse with dollars that have already been hit by self-employment tax and income tax. This makes accurate income reporting and expense analysis more critical than ever to ensure you aren't overpaying based on "phantom" income.
Common Myths About SB 711
Myth: "I can still deduct alimony on my 2026 California taxes if my lawyer writes the agreement correctly."
Reality: Not for new agreements. The law is the law. The state deduction is gone for any "instrument" executed on or after January 1, 2026.
Myth: "Since alimony isn't taxable, I don't need to report it at all."
Reality: While it isn't "taxable income," it is still a financial transfer that needs to be documented. Your mortgage lender, for example, will definitely still want to see those numbers.
Myth: "SB 711 will make my divorce faster."
Reality: Not necessarily. Because the "tax cushion" is gone, payors are often more aggressive in fighting for lower amounts, which can actually lead to longer negotiations if not handled by an experienced family law attorney in El Cajon.
Your Next Steps in San Diego County
The legal landscape in California is constantly shifting, and SB 711 is one of the biggest changes to hit family law in a decade. Whether you are just starting the process or looking to modify an old agreement, the math has changed, and your strategy should too.
At the Law Office of Andrew H. Griffin, III, APC, we’ve been helping San Diego families navigate these waters since 1983. We don't just look at the law; we look at the taxes, the real estate, and the long-term financial health of your family.
Don't go into a 2026 negotiation using 2025's playbook. Let’s make sure your agreement is actually sustainable for your future.
Ready to see how the new tax laws affect your case?
Call us today at 619 853-3009 or visit https://www.andrewgriffinlawoffice.com/contact/ to schedule a consultation. We’re here to help you see the big picture.
For more insights on how legal changes affect your assets, check out our firm overview or listen to our latest podcast episodes.
