While a Court cannot order alimony, the parties can have alimony as a part of their divorce agreement. An example of the alimony provision is enclosed. Remember that unless the method of payment paragraph is included, this provision will not be enforceable without clarifying orders.
Alimony Payments, and Length of Time
As contractual alimony payments, Joe Smith shall pay to Sally Smith $150 (one hundred and fifty dollars) per month, for 12 consecutive months following the date of this divorce.
Total Alimony to be Paid: _________
Method of Payment
IT IS ORDERED that JOE SMITH will pay $150 to Sally Smith by Wire Transfer to Sally Smith’s Account with ________, ending with _______on the first day of each month and for each consecutive month thereafter until the termination of these orders.
Obligation to Terminate Upon Death of Either Receiving Party or Paying Party
The alimony will terminate at the death of Paying party or of Receiving Party.
Remarriage of Either Party
The payments of alimony listed herein shall immediately cease and terminate on the remarriage of wife.
Intended Tax Impact
In accordance with section 71 of the Code, all alimony payments made under this
Article will be includable as income on Receiving Party’s income tax returns beginning in calendar year 2017. In addition, those payments will be deductible on Paying Party’s income tax returns in accordance with section 215 of the Code beginning in the same calendar year. All payments made under this article are taxable to Receiving Party and includable in Receiving Party’s gross income, and Receiving Party agrees to report them in Receiving Party’s federal income tax return and to pay all taxes due thereon. Receiving Party agrees to furnish written assurance signed by Receiving Party and by any tax return preparer that payments made under this article have been included as income in Receiving Party’s federal income tax return for the applicable year. The written assurance will be given at the time the federal income tax return is filed. Paying Party shall be entitled to deduct all payments from Paying Party’s federal income tax return. If Receiving Party fails and refuses to include the alimony payments in Receiving Party’s gross income, Paying Party’s obligation to make the payments will be suspended until all the amounts paid have been included in Receiving Party’s gross income, at which time the payments will be resumed and Paying Party will immediately pay any amounts held in suspense.