Alimony
What Is Alimony?
Alimony is a financial payment made by one former spouse to another following a divorce or legal separation. The payments are intended to provide financial support to a spouse who may have lower income or fewer financial resources.
Alimony terms are typically established through court orders or divorce agreements.
Why It Matters
Alimony helps ensure financial stability for a spouse who may have relied on the other partner’s income during the marriage. It may also affect tax planning, budgeting, and long-term financial arrangements after divorce.
The tax treatment of alimony has changed under certain tax laws.
How Alimony Works
Courts consider several factors when determining alimony payments, including:
- length of the marriage
- income and financial resources of both spouses
- employment and earning potential
- lifestyle during the marriage
Payments may be temporary or long-term depending on circumstances.
Example
After a divorce, a higher-earning spouse may be required to pay monthly alimony to help support the former partner.
Alimony vs Child Support
- Alimony supports a former spouse.
- Child support is intended to support children of the relationship.
FAQs About Alimony
Who decides alimony payments?
Courts or negotiated divorce agreements.
Is alimony always permanent?
No. Many payments are temporary.
Can alimony agreements change?
Yes. Courts may modify payments if circumstances change.
Related Terms
