Often in lieu of alimony, a lump sum payment is made to a party in a divorce. Present day values of what alimony paid out over time might be are made after an assessment is made of how much and the possible term of alimony. Generally, these payments are made as equitable distribution and not as support, an important distinction as otherwise, these lump sum payments could be taxable and greatly reduced in what they payout, a clear deterrent to taking a lump sum payout. In addition, parties may choose for outstanding personal loans to family or other debt to paid out in a lump sum. Generally, these payments are also not taxable to the party receiving the payment. If you have questions regarding the tax status of a lump sum payment proposed in a divorce, please call Green & Associates, at 732-390-0480 in our East Brunswick office or at 201-242-1119 in our Fort Lee office. Night appointments are available. Ask us about our flat fees for specific services regarding an uncontested divorce or default divorce.
Sep 21, 2015 @ 07:39 PM — by Michael Green