Ending a marriage can be an expensive undertaking in New Jersey. In addition to the legal fees incurred during the divorce negotiations, there may be additional expenses of alimony and child support. These are typically paid out over time on a monthly basis and can go on for many years. Is there an option for a lump-sum payment where alimony is concerned?
New Jersey has a means for calculating child support payments; however, there is no such method for calculating alimony. Many different factors go into calculating that amount. Included in these are the financial needs of both people, the lifestyle they’ve become accustomed to and the duration of the marriage. The remaining earning potential of the individuals may also be taken into consideration.
While there may be ways to determine a buyout amount, one will also wish to consider any tax ramifications that may result. Current alimony payments are still tax deductible to the payer and are grandfathered in under the new law that goes into effect on January 1, 2019. Alimony payments settled in divorces finalized after that date will no longer be deductible. With this information in mind, one may want to weigh whether a buyout would be beneficial.
Someone in New Jersey who is considering alimony options in divorce negotiations may wish to consult with a family law attorney. An experienced lawyer can review a couple’s financial situation and help to determine a fair and sensible alimony agreement. The lawyer can review all of the available options with the client, including those under the new law if that is applicable, to arrive at an equitable amount.