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Yes, it is possible. This is called a "alimony and maintenance trust" (aka a "682" trust because of the citation to the law).
An Alimony and Maintenance Trust has a number of benefits. For instance, an Alimony and Maintenance Trust:
- protects the ex-wife from the death or financial insolvency/bankruptcy of the ex-husband prior to the payment of all alimony.
- can be administered by a neutral third-party professional trustee (such as a bank), who can act as an intermediary between the former spouses (especially important if the former spouses have a very contentious relationship).
- can have lasting benefits for children. After the ex-wife has received the amount of alimony for the period of time indicated in the divorce or separation agreement, or after her death, the income of the trust can either continue for the benefit of the ex-spouse’s children or the trust assets can revert back to the ex-husband to do with as he pleases.
Code Section 682 provides that the transferee spouse is taxed as a trust beneficiary, and not as the recipient of alimony, on the amount of any trust income that the transferee spouse is entitled to receive.
So there are tax benefits, if you don't need as much income in one year, etc... and it's certainly beneficial to get that out of his hands if you think that the money is not necessarily secure (again, bankruptcy, death, etc...).
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