Alimony Payment

AAA

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.

INVESTOPEDIA EXPLAINS '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. Income

    Money that an individual or business receives in exchange for ...
  2. Child Support

    The monetary payments that are made from one ex-spouse to another ...
  3. Alimony

    Payments made to a spouse or former spouse under a separation ...
  4. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  5. Institute For Divorce Financial ...

    An organization committed to educating financial professionals ...
  6. Equitable Division

    A legal theory that guides how property acquired during the course ...
RELATED FAQS
  1. How do I find a good personal bankruptcy lawyer?

    While it is not necessary to hire an attorney to file bankruptcy, the rules that govern bankruptcy can be extremely complex, ... Read Full Answer >>
  2. How do Social Security benefits for widows or widowers work?

    If you are the surviving widow or widower of a deceased worker who would have been eligible to receive Social Security benefits ... Read Full Answer >>
  3. How do Social Security survivor benefits work?

    Though it's not a pleasant subject, it is important to consider the financial future of your family in the event of your ... Read Full Answer >>
  4. What happens to a Locked-In Retirement Account (LIRA) in the case of a divorce or ...

    When a married couple splits the assets in a Locked-In Retirement Account (LIRA), the assets are generally divided between ... Read Full Answer >>
  5. What are the rules and restrictions on a Spousal IRA?

    Formerly called a homemaker individual retirement account (IRA) and renamed to Kay Bailey Hutchison IRA, in 2012, after the ... Read Full Answer >>
  6. When is it optimal to take my widow's Social Security benefit?

    The optimal time to apply for Social Security benefits as the surviving spouse of a deceased worker depends on several factors, ... Read Full Answer >>
Related Articles
  1. Retirement

    Become A Certified Financial Divorce Analyst

    Use your financial knowledge to help people preserve their financial integrity after a failed marriage.
  2. Budgeting

    Get Through Divorce With Your Finances Intact

    Find out how to split your finances without coming up short.
  3. 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"?
  4. Economics

    Explaining the Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business.
  5. Investing

    Who's Banning Facebook Now?

    Facebook may have over one billion monthly users, but there are many countries, including China, where the social media giant is banned.
  6. Investing

    Why Facebook is Banned in China

    Tight controls imposed by China have resulted in the ban of several foreign social media sites, like Facebook, but how did this come about?
  7. Investing

    REITs 101: How They're Regulated

    Here's everything you need to know about REITs in less than five minutes.
  8. Mutual Funds & ETFs

    How To Start a Hedge Fund In the United States

    A general overview of how to start a hedge fund firm in the United States, including complying with state and federal regulations.
  9. Mutual Funds & ETFs

    How To Start A Hedge Fund In The UK

    Starting a new hedge fund in the United Kingdom is more complex than in the United States. We discuss UK laws and regulations for starting a new hedge fund.
  10. Mutual Funds & ETFs

    How To Start A Hedge Fund In Canada

    Would-be hedge fund managers in Canada need to understand the laws and regulations that must be followed in order to start a fund in the country.

You May Also Like

Hot Definitions
  1. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  2. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  3. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  4. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
Trading Center