Things to Discuss When Considering Lump Sum Alimony
Obtaining a divorce often involves settling or litigating several important issues, including the division of marital property, child custody, child support, and the payment of alimony. Alimony itself comes in many different forms and can be paid in many different ways. No matter what kind of alimony you are dealing with, one major consideration involves deciding whether it will be paid over time or in one lump sum. Here we discuss the issues to keep in mind when considering whether to pay (or receive) alimony as a lump sum or over months or years. For help with alimony or other issues in Union, Middlesex, or Essex County, contact the Law Offices of John B. D’Alessandro for advice and representation from a knowledgeable and experienced Union, New Jersey, divorce and family law attorney.
What Is Alimony?
Alimony is a court-ordered payment that one former spouse makes to the other for a period of time after a divorce. Alimony can be ordered for different reasons, and New Jersey courts recognize different forms of alimony for those different purposes. The different kinds of alimony in New Jersey are listed below. Keep in mind that alimony is not an automatic or required feature of divorce; it must be requested and proven in court or agreed to by the parties before the judge will incorporate it into the final judgment of divorce.
Rehabilitative Alimony: This form of alimony is intended to support a spouse while they acquire the necessary skills or education for self-support. Rehabilitative alimony is temporary and purpose-specific.
Limited Duration Alimony: This form of alimony is awarded for a set period, typically in cases where the marriage was less than 20 years.
Reimbursement Alimony: In cases where one spouse supported the other through advanced education, expecting to reap the financial benefits down the line, reimbursement alimony can be awarded.
Permanent Alimony: Permanent alimony is typically awarded in cases of long-term marriages where one spouse may not be able to become financially self-sufficient due to factors like age, health, or absence from the workforce.
What Is Lump Sum Alimony?
Unlike periodic alimony, which is paid out over time, lump-sum alimony is a one-time payment from one spouse to the other. It’s a viable option for those who wish to expedite their financial separation during a divorce.
Benefits of Lump Sum Alimony
There are several benefits to choosing lump sum alimony. The primary advantage is the financial finality it provides – once the lump sum is paid, there are no more ongoing payments, allowing both parties to move forward without continued financial intertwinement. This form of alimony payment also eliminates the risk of missed future payments, giving the receiving spouse an immediate, guaranteed financial resource.
Points to Consider When Discussing Lump Sum Alimony in New Jersey
Although the benefits of lump sum alimony might seem appealing, it’s essential to consider a few critical factors:
Tax implications: Alimony laws in New Jersey underwent significant changes in 2019, notably affecting the tax implications of alimony payments. With lump sum alimony, it’s crucial to understand how this payment will impact your tax liabilities.
Financial capability: Can the paying spouse afford to make a single, large payment? It’s necessary to assess the financial viability of this option.
Future uncertainties: Future changes in circumstances (like remarriage or significant changes in income) typically won’t affect lump-sum alimony, unlike periodic alimony.
In a divorce proceeding, professional legal advice is invaluable. A seasoned New Jersey family law attorney can guide you through these considerations, ensuring you make informed decisions that protect your financial interests.
The Law Offices of John B. D’Alessandro: Your Guide Through Divorce Proceedings in Union, Middlesex, or Essex County
As a New Jersey resident going through the emotionally challenging and disruptive period of divorce, you deserve reliable and expert guidance in handling your divorce proceedings. The Law Offices of John B. D’Alessandro offers comprehensive advice and legal services tailored to your unique situation, including decisions about lump-sum alimony.
Deciding on the form of alimony can significantly impact your financial future. The experienced team at the Law Offices of John B. D’Alessandro is committed to helping you navigate these important decisions, providing the support and legal expertise necessary to reach a resolution that serves your best interests.
If you’re considering lump sum alimony, or simply need guidance in your divorce proceedings, do not hesitate to reach out to our dedicated team today.