Alimony Payment

DEFINITION of 'Alimony Payment'

A periodic pre-determined sum awarded to a spouse or former spouse following a separation or divorce. Alimony is an obligation to make payments for support or maintenance; an alimony payment is the actual sum paid to fulfill the obligation. A decree or court order outlines the alimony payment structure and requirements.

BREAKING DOWN 'Alimony Payment'

When a married couple becomes legally separated or divorced, a court may determine the legal obligation of one of the individuals to provide money to the other to provide the type of financial support to which he or she has become accustomed to throughout the life of the marriage. In the United States, the Internal Revenue Service permits alimony payments to be deductible by the payer, and requires the recipient to include the alimony payments as income. Child support payments are separate from alimony payments.

RELATED TERMS
  1. Alimony

    Payments made to a spouse or former spouse under a separation ...
  2. Alimony Trust

    A legal arrangement where property is transferred to a former ...
  3. IRS Publication 504

    A document published by the Internal Revenue Service that provides ...
  4. Legal Separation

    For all practical purposes, a circumstantial divorce without ...
  5. Child Support

    The monetary payments that are made from one ex-spouse to another ...
  6. Recurring Debt

    Any payment used to service a debt obligation that occurs on ...
Related Articles
  1. Personal Finance

    How Life Insurance Works in a Divorce

    Learn the implications of life insurance in a divorce situation, and identify the steps you should take to ensure your policies are sorted out post-divorce.
  2. Financial Advisor

    How To Manage Your Finances Through A Divorce

    Dividing assets and liabilities in a divorce can be a sad, complicated task. But with some planning, patience and the help of a financial adviser, splitting couples can avoid some obvious and ...
  3. Financial Advisor

    How to Protect Your Retirement After a Divorce

    Divorce is never fun, but knowing the rules and anticipating the impact of retirement plan division and pension payouts can make things easier.
  4. Retirement

    Divorce Over 50: Seven Mistakes to Avoid

    With longer lives and women's greater financial independence, divorces at 50+ are soaring. How to avoid money trouble when you sever ties with your spouse.
  5. Personal Finance

    When is a Down Payment Used?

    A down payment is an initial cash payment on an expensive good.
  6. Retirement

    5 Things To Consider Before Late-In-Life Marriage

    Waiting to marry has become the norm, but do you know what to consider before saying "I do"?
  7. Personal Finance

    Get Through Divorce With Your Finances Intact

    Find out how to split your finances without coming up short.
  8. Personal Finance

    How To Calculate AGI For Tax Purposes

    The first step in completing your taxes is calculating your adjusted gross income. Here’s how.
  9. Managing Wealth

    Before You Remarry: Blending 2 Families' Finances

    Whether both of you are bringing kids into the new marriage, or just one of you, here are some smart solutions to preempt any financial tensions.
  10. Retirement

    What is a Lump-Sum Payment?

    A lump-sum payment is a one-time payment for the total or partial value of an asset.
RELATED FAQS
  1. How do alimony and child support factor into my taxable income?

    Find out how child support and alimony are treated by the IRS and why alimony has a much greater impact on total tax burdens ... Read Answer >>
  2. What is the best way to receive a lump sum settlement?

    My ex owes me monthly alimony but he is not paying. I was wondering if I can ask for a lump sum and pay little or no taxes? ... Read Answer >>
  3. Can I file single if I am legally married but have not lived with spouse for two ...

  4. How does a divorce impact regular social security benefits?

    If a person divorces and he is already receiving social security benefits, does he need to share those benefits with his ... Read Answer >>
  5. Can a person who is retired continue to fund an IRA?

    For the purposes of contributing to an IRA, compensation (i.e. earned income) does not include income from a pension, an ... Read Answer >>
  6. Do I have to pay capital gains tax when I sell my home?

    My husband and I were divorced in 2011. We owned our house jointly and he lived there after the divorce until his death in ... Read Answer >>
Trading Center