Payments made to after separation or divorce to a former spouse.

This is a stipulation of a divorce decree or separation agreement. Typically the requirement of the chief provider during the marriage, this is a practice designed to ensure a means of livelihood after the separation or divorce. In terms of taxation, alimony payments are considered taxable income for the receiver and a deductible expense, for adjusted gross income, for the payer. Related Words

* Taxable income
* Deductible
* Adjusted Gross Income