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Lump sum alimony payments

Florida residents who have to make monthly spousal payments to an ex-spouse may be able to avoid having to submit payments every month. Some individuals would rather pay the alimony in one lump sum instead of incurring the consequences of a missed monthly payment. However, this type of arrangement will have to be approved by both the court and the recipient.

People on the receiving end of alimony payments should know that there are advantages to receiving their alimony all at one. Because the single payment would have to total the amount of any future payments and there is no discount for present value, the recipient may end up getting more money.

Receiving a lump sum payment for alimony also eliminates the need to be concerned about collections. In order to receive delinquent monthly alimony payments, some ex-spouses find it necessary to ask the court to issue an order. This can be avoided if the total amount of alimony is paid up front.

There are tax issues to consider with lump sum alimony payments. Accepting a payment that has been categorized as alimony may require the recipient to report the amount as income for that year and pay taxes on that amount. However, if the payment is labeled as a settlement, the recipient may not be assessed taxes on the funds. A tax professional should be consulted about what may be the best method for receiving a lump sum payment. Hillsborough County alimony lawyers can also assist clients with resolving this issue. The lawyers may advise whether making or receiving lump sum alimony payments is wise.

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Pilka & Associates, P.A.
213 Providence Road
Brandon, FL 33511

Phone: 863-236-9321
Phone: 813-653-3800
Fax: 813-651-0710
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256 North Kentucky Avenue
Lakeland, FL 33801

Phone: 863-236-9321
Phone: 863-687-0780
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