Alternatives to Monthly Alimony Payments

Take your alimony lumps all at once. Find out if your state allows lump sum alimony payments.

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."

To read and printout a copy of the Form please link below.

Questionnaire: Are You Entitled to Alimony (Spousal Support)

You can download a free copy of Adobe Acrobat Reader at
http://www.adobe.com/acrobat/readstep.htm

Copyright 2005 Nolo

Disclaimer

This publication and the information included in it are not intended to serve as a substitute for consultation with an attorney. Specific legal issues, concerns and conditions always require the advice of appropriate legal professionals.

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