Lump-Sum Alimony

Alimony payments are generally made on monthly basis but the parties can agree or the court may order that the payment be made in a lump sum.

In such cases, the spousal support or alimony is in the form of a one-time payment. It is often a substitute for adjustment in property settlement. There are many tax benefits associated with lump-sum alimony. This type of alimony is generally paid even if the receiving spouse remarries or qualifies under an exception that usually results in the termination of the alimony order.

Lump-sum Alimony

A spouse can accept or be awarded lump sum alimony in lieu of the usual monthly alimony payments which are subject to taxes. It is usually in the form of a single cash payment or transfer of a valuable asset from the paying spouse to the recipient spouse. It is generally made as part of the divorce or legal separation or dissolution of a marriage. It is not subject to taxation. It is an attractive option to regular alimony because the recipient spouse receives the entire amount in one go and does not have to depend on the paying spouse’s financial ability to make the payments in the future. To avoid being taxed, the payment or transfer must take place within one year from the date of the divorce.

Would you like to discuss your legal matter?

PHONE

image description
Evyn Alvares RECEPTION (877)509-5204

I assist in scheduling new and existing clients for all offices. For initial consultations I will ask you a few questions and then find the best time for you to talk to one of the lawyers that best fits your legal matter.

Call me or use the email form and I will follow up with you right away.

EMAIL

The Law Offices of Tom Hogan will provide you with personalized attention and guidance. Protecting your rights is our main objective. We have been representing clients for the past 30 years and our experienced team of attorneys will advise you of the legal consequences of every decision you take.