Lump-sum alimony refers to a single payment made by one spouse to the other following a divorce, instead of regular ongoing payments. This payment is intended to assist the recipient spouse with their living expenses or compensate for any losses incurred during the marriage. It should be distinguished from a property settlement, which involves the division of assets between the couple. The recipient of lump-sum alimony is required to pay taxes on it, while the payer can deduct it from their taxes.
Lump-sum alimony is a fixed amount of money that one spouse is required to pay to the other spouse for financial support and maintenance following a divorce. Unlike periodic payments, this type of alimony cannot be modified. The paying spouse must provide the entire sum in one payment. For instance, if a couple divorces and the court orders the husband to pay $50,000 in lump-sum alimony to the wife, he must pay the full amount at once. The wife cannot request additional funds in the future, and the husband cannot decrease the owed amount. Lump-sum alimony is typically granted when the court determines that the receiving spouse requires a substantial sum to sustain themselves after the divorce. It may be utilised to compensate for property division or to offer financial assistance for a specific duration.
Lump-sum alimony refers to a one-time payment made by one spouse to the other as part of a divorce settlement. It is a predetermined amount agreed upon by both parties and is intended to provide financial support or compensate for any economic disparities resulting from the divorce.
The amount of lump-sum alimony is typically negotiated between the divorcing spouses or determined by a court based on various factors such as the length of the marriage, the earning capacity of each spouse, and the standard of living during the marriage.
No, lump-sum alimony is not tax-deductible for the payer. Unlike periodic alimony payments, lump-sum alimony is considered a non-taxable event for both parties.
In most cases, lump-sum alimony cannot be modified or terminated unless there are exceptional circumstances such as fraud, mistake, or a substantial change in circumstances that make it impossible for the paying spouse to fulfill the obligation.
Yes, lump-sum alimony can be paid in installments if both parties agree to such an arrangement. However, it is important to clearly outline the terms and conditions of the installment payments in the divorce settlement agreement.
Yes, lump-sum alimony can be paid in assets such as property, investments, or other valuable items, as long as both parties agree to this arrangement. It is crucial to accurately assess the value of the assets being transferred to ensure a fair division.
Generally, lump-sum alimony cannot be modified or terminated based on the recipient’s remarriage. Once the lump-sum payment is made, it is considered a final settlement and is not subject to change based on subsequent events.
Yes, lump-sum alimony can be enforced through legal means if the paying spouse fails to make the payment as agreed. The recipient can seek legal remedies such as filing a contempt of court motion or pursuing a judgment against the delinquent spouse.
Yes, lump-sum alimony can be included in a prenuptial agreement. Both parties can negotiate and agree upon the terms of lump-sum alimony before getting married, providing clarity and certainty in the event of a divorce.
In general, lump-sum alimony cannot be modified based on the paying spouse’s financial hardship. Once the lump-sum payment is made, it is considered a final settlement, and the paying spouse’s financial circumstances do not typically affect the obligation.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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