Alternatives to Monthly Alimony Payments

Posted on March 30, 2005 by nrglaw

Lump Sum Support

In several states, a spouse may pay the total alimony obligation at the time of the divorce by giving the other spouse a lump sum payment equal to the total amount of future monthly payments.

If you accept a lump sum alimony payment, you may face tax consequences. For example, if you receive a lump sum payment that's referred to as "alimony" in your divorce decree, you may be subject to taxes on the full amount for that year. But if the same payment is called a "settlement," you may not be taxed. Don't sign any documents or agree to any terms until you've consulted an expert, such as an accountant who specializes in divorce issues. The money you spend on a consultation could be peanuts compared to what you might owe in income taxes.

To find out more about your state's alimony laws, go to your local law library or go online to the free legal research center at www.nolo.com, and click on "Statutes and Cases."

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Prince_Charming - April 15, 2005 8:59 AM

My wife left me, moved to Florida, and is trying everything to avoid AZ divorce law, and postpone the divorce till the value of our home goes up. I want to buy her out, and expedite the divorce, and get permanent spousal support (after a "short term" 6 year marriage). Yet, she left me with debt that has minimum payments of 135% of my net income. Do you have any advice?

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