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Alimony Payments

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Alimony Payment
A payment one makes periodically to a former spouse (or a current spouse from whom one is separated). Alimony payments are tax deductible for the paying person and are taxable income for the receiving person.

Alimony Payments
Payments made by one spouse to the other spouse or former spouse under a separation or divorce agreement. Qualified alimony and separate maintenance payments are includible in the gross income of the recipient and are deductible by the payer. Child support payments, voluntary payments, and property settlements are not treated as alimony.


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This covers a wide range of legal techniques that are used to insulate assets from being pursued by creditors resulting from various situations like bankruptcy, taxation, and alimony payments.
Child support payments and alimony payments are both examples of areas in which inexperience can cause negative ramifications.
Additionally, one or both spouses will likely have additional debt after the divorce in the form of alimony payments and/or child support.
 
 
 
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