Alimony Payment

Money paid to a separated or divorced spouse as required by a divorce decree or a legal separation agreement. The IRS allows qualifying payments as Deductions by the payor and they are taxable income to the payee.

Term used in a divorce for payment from one spouse to another. For tax purposes, the party making the payments treats them as a deduction in arriving at Adjusted Gross Income (AGI). Frontloading of payments (significantly higher payments in the earlier years) is not permitted. The recipient of the alimony payments treats them as income for tax reporting.