ALIMONY (FSM)

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Payments made for the maintenance and care of a former or estranged spouse.

Treatment: Unearned Income.

Example:

An individual receives $200 per month in direct alimony from their estranged spouse. This money is considered unearned income.

Exception: Alimony is excluded income when payments are made to a third party, such as a vendor payment, according to one of the following criteria:

The court order or binding written agreement specifies the payment goes to a third party instead of the household.

·         The alimony payment is not required by a court order or binding written agreement.

·         Alimony payments in excess of the amount specified in a court order or written agreement which are paid to a third party on the household’s behalf shall be excluded from income

Examples:

An individual receives $200 per month in alimony from their estranged spouse. However, the court has ordered this money be sent directly to the substance abuse clinic where the individual receives outpatient care. This money is excluded.

A court awards support payments in the amount of $400 a month and in addition orders $200 to be paid directly to a bank for repayment of a loan. The $400 a month payment is counted as earned income and the $200 payment is excluded from income.

References: He-W 601.01(k), He-W 654.09, RSA 126-G:5, RSA 167:4,I(a), CFR 273.9(b)(2)(iii), 7 CFR 273.9(c)(1)(vii)(C)