New Jersey Info

New Jersey Divorce Start Your Divorce Find Professionals New Jersey Articles Divorce Facts Divorce Grounds Residency Divorce Laws Mediation/Counseling Divorce Process Legal Separation Annulments Property Division Alimony Child Custody Child Support Divorce Forms Process Service Grandparent Rights Forum New Jersey Products Divorce by County

New Jersey Articles

Agreements Attorney Relationship Custody & Visitation Child Support Collaborative Law Counseling Divorce/General Domestic Abuse Domestic Partnership Financial Planning Foreign Divorce Mediation Parenting Property Division Spousal Support SEE ALL

Info Categories

Contemplating Divorce Children & Divorce Divorce, Dollars & Debt Divorce Laws Divorce Process Divorce Negotiation SEE ALL

More Information

Articles Checklists Research Center Cases of Interest Dictionary Encyclopedia Encyclopedia (pop-up) Blogs

For Professionals

Advertise With Us Free Network Page Join Our Network Submit Articles Case Management Sign In

Network Sites

New Jersey Divorce Support New Jersey Divorce Online

What is an Alimony Buyout?

While it’s not for everyone, an alimony buyout is something that may make sense in your specific situation, and is certainly something worth considering.

Alimony Buyout Defined

Simply put, alimony buyout (sometimes called lump sum alimony) is the payment of spousal support or its equivalent in one shot, rather than through periodic payments made over the course of a designated timeframe. This can be done in the form of a cash payment, where the payer writes one check for the entire amount of spousal support he or she will owe, or it can be done through property division. When it’s the latter, one party basically agrees to give up a portion of the assets they’re entitled to during the property distribution to the other spouse in lieu of paying alimony.

How is Alimony Buyout Calculated?

Calculating a lump sum alimony payment isn’t as straightforward as it may seem. While it does involve taking the amount of each periodic payment and multiplying that by the number of payments that would be due if alimony was to be paid out over time, there are other factors that are used to help determine the “present value” of the lump sum payment. Basically, a discount is applied to account for the fact that the value of a dollar today is higher than what that same dollar will be worth a year from now. Therefore, the amount of an alimony buyout may not necessarily match the exact total of periodic payments added up.

Lump Sum Alimony vs. Periodic Alimony

In addition to the obvious differences between payout method, alimony buyout and periodic alimony feature a number of other differences. For instance, a lump sum alimony payment is not subject to any future modifications by the court. In other words, once a couple negotiates and agrees upon a lump sum payment amount for alimony, it cannot be adjusted in the future, unlike periodic alimony payments, which can be increased, decreased or even terminated based on a number of circumstances. Additionally, the two types of alimony payments may have different tax implications.

Why Alimony Buyout?

Ask anyone that’s been ordered to pay spousal support how they feel about writing a check to their former spouse every week or month. You’ll probably be met with a few choice words. The fact is most people wish they could just move on after a divorce, sever ties and go their separate ways. Unfortunately, when there are alimony payments involved, it can feel as if this separation never truly happened, which can ultimately lead to frustration and bitterness on the part of the payer.

By choosing instead to settle on a one-time payment, or a disproportionate share of assets during the divorce, both parties are able to effectively end their dealings with one another (assuming there are no children involved) and move forward. This often results a more amicable resolution, avoiding years of potential bitterness and animosity between ex-spouses.

How Mediation Can Help?

The subject of alimony is a complicated one, and often involves a variety of deep-seeded emotions and strong feelings on the part of both spouses. A mediator can facilitate an open, honest discussion about the situation at hand and help you work together to negotiate a solution that works for everyone, whether it’s an alimony buyout or traditional periodic payment plan. The goal is to reach an agreement that you can both feel comfortable with and that will eliminate the bitterness and frustration that is often associated with spousal support situations.


Was this helpful? Like our site & let us know.

Related Articles


Start New Jersey Divorce Start Your New Jersey Online Divorce Today
Easy, Fast and Affordable with a 100% Guarantee.
New Jersey Divorce Find New Jersey Divorce Professionals in Your Area:
Join the Network
New Jersey Divorce Products, Services and Solutions New Jersey Divorce Products, Services and Solutions
New Jersey Divorce Resources to Help You Through the Process.
Online Parenting Class New Jersey Mandatory Online Parenting Class
Easy and convenient - complete at your own pace online.
Divorce and Custody Books Discount Divorce Bookstore
Over 100 Titles of the Best Books on Divorce & Custody.
Divorce Downloads Divorce Download Center
Instantly Download, Books, Manuals, & Forms.
Divorce Worksheet Free New Jersey Divorce Worksheet & Separation Agreement
Your Guide to Get Organized and Put Everything in Writing.
   
New Jersey is an equitable distribution state, meaning that the division of property in a divorce is to be done fairly, not necessarily equally. The court can take into consideration any factor it deems relevant when dividing property, but it must consider certain factors, such as how long the couple was married and the age and health of both spouses, the income or property brought to the marriage by each spouse, the standard of living that was achieved during the marriage, and the extent to which one spouse may have deferred career goals, among others.
Divorce Lawyers & Mediators
 

Find Professionals

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code:

 

Start Your Divorce File for a New Jersey Divorce

 

Settle Your Divorce Negotiate Your New Jersey Divorce

 

Support Forum New Jersey Support Forum

Children In Between - Online Parenting Class


FEATURED TOOL - Divorce Financial Checklists (organize important data that you will be need for a successful divorce)

Guarantee Official PayPal Seal Facebook Twitter Versign Secure Site
Limited Offer Women's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"The Absolute Best Investment in Your Divorce"

Men's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"Uncover Your Options and Unleash Solutions"