Jerry and Elizabeth divorced in 2018 and do not live together. Elizabeth has custody of their child, Art, and Jerry pays Elizabeth $22,000 per year. All property was divided equally. How much should Elizabeth include in income if $12,000 of Jerry’s payments is designated as “nonalimony” in the divorce decree?
Jerry and Elizabeth divorced in 2018 and do not live together. Elizabeth has custody of their child, Art, and Jerry pays Elizabeth $22,000 per year. All property was divided equally. How much should Elizabeth include in income if $12,000 of Jerry’s payments is designated as “nonalimony” in the divorce decree?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jerry and Elizabeth divorced in 2018 and do not live together. Elizabeth has custody of their child, Art, and Jerry pays Elizabeth $22,000 per year. All property was divided equally.
How much should Elizabeth include in income if $12,000 of Jerry’s payments is designated as “nonalimony” in the divorce decree?
Expert Solution
Step 1
Alimony :
Alimony is the payment that is ordered by the court as an award to a spouse (wife) by the former spouse on a divorce agreement. Its main purpose is to provide spousal support so that the spouse can continue the lifestyle to which they are accustomed to after divorce.
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