SPOUSAL SUPPORT (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 spousal support from her estranged husband. 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.

• The alimony payment is in excess of the amount specified in a court order or binding written agreement. (Exclude the excess.)

Examples

A woman receives $200 per month in spousal support from her estranged husband. However, the court has ordered this money be sent directly to the substance abuse clinic where she receives outpatient care. This money is excluded.

The woman’s estranged husband also sends her $50 per month for her care and maintenance, above and beyond his court-ordered spousal support. This money is excluded income, because it is in excess of the $200 required by the court.