Definition
Money one spouse pays to the other after a divorce. The payment amount and duration are usually determined by a court or legal agreement.
What to consider
- Factor these payments into your monthly budget and long-term planning.
- Keep a record of every transaction for clarity and future reference.
- Stay updated on any legal changes that might affect the amount or duration.
Real world scenarios
- After her divorce, Sara includes monthly alimony payments in her budget. This adjustment ensures she can handle rent and other bills without falling behind.
- By consistently paying alimony on time, Brad maintains a steady credit profile and avoids legal complications.
- Negotiated alimony terms allow Jenna to transition to a single-income household more easily and plan her finances with clarity.
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