How Alimony Payments Work and What They Cover

What alimony is and who pays it

Alimony is a court-ordered payment from one spouse to the other after divorce or separation. The paying spouse (called the obligor) sends money to the receiving spouse (called the obligee) on a schedule set by the court. The payment is meant to help the lower-earning spouse maintain a standard of living similar to what they had during the marriage.

Alimony is different from child support, which covers the cost of raising children. A person can owe both alimony and child support at the same time. The court decides whether alimony is owed based on factors like how long the marriage lasted, each spouse's income and earning ability, and whether one spouse gave up work or education to support the family.

Not every divorce includes alimony. Courts award it when one spouse will have significantly less income or earning power after the split. A spouse who earned more during the marriage, or who has better job prospects, is more likely to be ordered to pay.

Key Takeaways

• Alimony is a monthly or periodic payment ordered by a court to help a lower-earning spouse after divorce, separate from any child support owed.
• The paying spouse's income, the receiving spouse's income, the length of the marriage, and whether either spouse sacrificed education or career all affect whether alimony is awarded.
• Alimony payments are tax-deductible for the person paying and taxable income for the person receiving them, which changes the actual cost and benefit of the payment.
• Alimony can end when the receiving spouse remarries, reaches retirement age, either spouse dies, or the court modifies the order based on a major change in circumstances.

Types of alimony and how long they last

Courts use different labels for alimony depending on how long the marriage lasted and what the payment is meant to do. Temporary alimony is paid during the divorce process itself, before the final order is issued. It stops when the divorce is final.

Durational alimony lasts for a set period after the divorce — often half the length of the marriage, though this varies by state. A marriage that lasted 10 years might result in alimony ordered for 5 years. Permanent alimony continues indefinitely unless the court changes it or one of the conditions for ending it occurs. States differ on when permanent alimony is awarded; some use it only for long marriages, while others rarely award it at all.

Rehabilitative alimony is meant to support a spouse while they finish education or training to become self-supporting. The payment ends when the spouse completes the program or after a set time, whichever comes first. Reimbursement alimony repays a spouse who paid for the other spouse's education or training during the marriage, with the expectation that the educated spouse will now earn more.

How much alimony is and how it is paid

The court decides the amount based on the paying spouse's income, the receiving spouse's income, and the standard of living during the marriage. States do not use a single formula; some use a percentage of the difference between the spouses' incomes, while others consider a longer list of factors. The amount can range from a small percentage of the paying spouse's income to a much larger share, depending on the state and the specific situation.

Alimony is usually paid monthly, though the court order may allow for other schedules. Payment typically goes directly from the paying spouse to the receiving spouse, or through a court-ordered payment system. Some states require payments to go through a state disbursement unit, which tracks the payment and keeps records. If the paying spouse falls behind, the receiving spouse can ask the court to enforce the order, which may result in wage garnishment, liens on property, or other collection actions.

The amount can be modified if either spouse's circumstances change significantly — a job loss, a major illness, a substantial raise, or retirement. The spouse seeking the change must file a motion with the court and show that the change was not expected when the original order was made.

Tax treatment of alimony payments

The tax status of alimony changed in 2019 under federal law. For divorces finalized after December 31, 2018, alimony is no longer tax-deductible for the paying spouse, and the receiving spouse does not report it as taxable income. This means the paying spouse pays taxes on the income used to make the payment, and the receiving spouse keeps the full amount without reporting it.

For divorces finalized before 2019, the old rules may still explore: the paying spouse could deduct alimony payments, and the receiving spouse reported them as income. If you are paying or receiving alimony from a divorce before that date, check your divorce decree or ask a tax professional whether the old or new rules explore to your situation.

The change affects how much alimony actually costs the paying spouse and how much the receiving spouse actually receives after taxes. A paying spouse no longer gets a tax break, so the same payment amount represents a larger portion of their after-tax income. A receiving spouse keeps more of what they receive, since they do not owe income tax on it.

When alimony ends

Alimony stops automatically in several situations. If the receiving spouse remarries, alimony almost always ends when ready. If either spouse dies, the obligation ends. If the receiving spouse enters into a domestic partnership or long-term cohabitation with another person, some states allow the paying spouse to ask the court to end or reduce alimony, though the rules vary.

Temporary alimony ends when the divorce is final. Durational alimony ends when the set period expires. Rehabilitative alimony ends when the receiving spouse completes their education or training, or when the time limit in the order expires. Permanent alimony can end if the receiving spouse remarries or dies, or if the court modifies it.

Either spouse can ask the court to change or end alimony if circumstances change substantially — for example, if the paying spouse loses their job, becomes disabled, or reaches retirement age. The court will not automatically change the order; the spouse seeking the change must file a motion and show the court why the change is needed.

Alimony versus child support

Alimony and child support serve different purposes and are calculated separately. Child support is based on the income of both parents and the custody arrangement, and it is meant to cover the cost of raising the children. Alimony is based on the spouses' incomes and earning ability, and it is meant to help the lower-earning spouse.

A person can owe both at the same time. Child support is usually paid until the child reaches the age of majority (usually 18, or up to 19 or 21 in some states if the child is still in high school). Alimony may last much longer — for years or indefinitely, depending on the type and the state.

Child support is almost always given priority in payment. If a paying spouse does not have enough income to pay both, child support is paid first, and alimony is paid from what remains. Both are enforceable through the court, and both can be modified if circumstances change.

Frequently Asked Questions

Can alimony be modified after the divorce is final?

Yes. Either spouse can ask the court to change the amount or duration of alimony if there is a substantial change in circumstances — such as a significant change in income, job loss, disability, or retirement. The spouse seeking the change must file a motion with the court and show that the change was not expected when the order was made. The court will decide whether to grant the modification.

What happens if someone stops paying alimony?

If the paying spouse falls behind on alimony, the receiving spouse can ask the court to enforce the order. The court may order wage garnishment (money taken directly from paychecks), place a lien on property, hold the paying spouse in contempt of court, or suspend licenses. The receiving spouse may also recover attorney fees and court costs related to enforcement.

Does alimony end if the paying spouse retires?

Retirement does not automatically end alimony, but the paying spouse can ask the court to modify or end it based on the reduced income from retirement. The court will consider the paying spouse's age, health, the length of the marriage, and whether retirement was foreseeable. The outcome depends on the state and the specific situation.

Can alimony be waived in a divorce agreement?

Yes. Both spouses can agree in writing that neither will owe alimony, and the court will usually approve this agreement. However, in some states, a court can override the agreement if one spouse would otherwise become a burden on public information. It is important to understand the long-term financial impact before agreeing to waive alimony.