Who pays the tax on alimony? My mediator (female), who I believe is working to ensure my wife gets the best deal, is stating that the payor would gross up the payment. So if the payee was expecting $1000/mo and 25% tax bracket the payor would actually pay $1250. I think she is being dishonest. I think this might be negotiated, but I’ve seen nothing that says I would be responsible for paying the taxes for my wife by grossing up the payment.