Is alimony considered income?

Yes, alimony is considered income in California. According to state law, alimony is money that one former spouse pays to the other after a divorce or legal separation. The alimony payments can be set up by a court order or through a written agreement. In California, alimony payments are considered income for tax purposes meaning the paying spouse must report it as income and the receiving spouse must report it as income on their taxes. Alimony payments received count as income for calculating child support. In California, both parents must pay child support in proportion to their incomes. Since alimony is considered income, California courts will include it when determining a parent’s ability to pay child support. In California, alimony is meant to provide financial assistance to the lower-earning former spouse after the divorce is finalized. The court takes many factors into account when determining alimony including each spouse’s income, the length of the marriage, each spouse’s ability to be self-supporting, and more. The alimony payments are expected to help the receiving spouse sustain themselves and live at a similar standard of living as they did during the marriage.

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Is alimony considered income?

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