Alimony Buyouts in New Jersey Divorce Cases
Either Spouse may have Reasons to Negotiate Alimony in a Lump Sum and Include it in a Marital Settlement Agreement. Get Perspective with a Cost-Benefit Analysis of Lump Sum Alimony Payments in NJ Divorce.
When spouses divorce in New Jersey, it is often difficult for both of the spouses to maintain the standard of living they had as a married couple. In order to support a non-breadwinning spouse financially until they can get their feet on the ground after divorce, the family court overseeing the dissolution of the marriage will often award them spousal support payments. Spousal support, also called alimony, is financial support sometimes required to be paid to a non-breadwinning partner who has sacrificed money-making ventures to tend to the home or family during a marriage or has been otherwise unable to contribute equally to marital finances. There are multiple types of alimony that may be awarded. Read on to learn more about two different ways to pay alimony, namely via periodic payments or a lump sum. Contact us at The Montanari Law Group if you are going through a divorce and either seek to receive spousal support or are expected to pay it. We can help you make the most of your marital settlement agreement so you can move on swiftly and prosperously.
A Look at Lump Sum vs. Periodic Alimony Payments in New Jersey
While there are multiple types of alimony, they are delivered in one of two primary ways: lump sum payments or periodic payments. A lump sum payment is a one-time payment that covers the entirety of the spousal support amount ordered by the family court judge. Once the alimony is paid in a lump sum, the paying spouse has no further financial obligations to the receiving spouse. On the other hand, periodic payments are delivered regularly over the course of a set amount of time, during which the paying spouse is required by New Jersey law to cover spousal support. Most periodic payments occur monthly, though there are other regularly scheduled arrangements.
A Cost-Benefit Analysis of Lump Sum and Periodic Alimony Payments
There are pros and cons to both lump sum and periodic payments, as well as circumstances in which both would be appropriate or inappropriate for a paying spouse. For example, one of the measurable benefits of making a lump sum alimony payment is that, with its completion, the paying spouse has no more obligations to their ex. In situations in which communication is conflictive or a continued relationship is not healthy, getting spousal support obligations out of the way at once and not looking back is a great idea. Paying in lump sum also prevents the receiving spouse from being legally able to request an increase in alimony down the road, should the payer’s income increase or the receiver’s decrease.
On the other hand, once a spouse makes a lump sum alimony payment, they cannot request anything in return. Periodic payments can be amended with court approval if one’s financial status decreases or changes if the recipient’s income substantially increases if their ex remarries, or for some other legitimate reason. However, if the originally-ordered alimony amount has been paid via a lump sum, the transaction is done and cannot be modified.
The Case for Periodic Payments
Contrary to lump sum payments, periodic alimony payments offer a paying spouse the opportunity to pay their alimony obligations over time, which is considered more financially sustainable for most. This arrangement also leaves the door open for modifications to a spousal support payment obligations, should circumstances change.
New Jersey Superior Court’s Influence on Spousal Support
The New Jersey Superior Court: Family Part, which oversees divorce, also issues spousal support orders as part. The court reviews various factors, such as each partner’s age, health, income, and professional capacity, to determine whether spousal support is required, how much, and for how long.
Discover Solutions to Address Alimony Agreements with our Family Law Attorneys
The court and the paying party work together to come up with an alimony payment agreement that meets the court’s decision regarding the spousal support requirement and is also financially sustainable for the paying spouse. An alimony attorney is an invaluable asset to this process, and our team at The Montanari Law Group is the group you want on your side for all divorce and alimony needs. We can walk you through the various types of alimony agreements that are available or required, as well as options for how to establish the one most suitable for your situation. Our family law and divorce attorneys bring expertise in New Jersey spousal support law and practice and coaching capacity to help our clients create an informed plan for payment that meets the court order, honors the best path forward given their relationship with their ex, and preserves their financial capacity.
We have successfully supported clients in Caldwell, Wayne, Millburn, Montclair, West Milford, and other towns throughout Essex, Hudson, Bergen, and Passaic Counties in sustainably meeting their alimony requirements as well as modifying promptly as the need or opportunity arises. Contact us today at (973) 233-4396 for a free consultation to discuss your divorce and spousal support case.