So What is an Alimony Buy-Out, Anyway?
You’ve heard the phrase before “alimony buy-out,” but what does that really mean?
Alimony is typically a periodic payment, paid monthly or per paycheck, over a period of years.
When you “buyout” alimony, a calculation is made of how much that stream of periodic payments would be worth if it was paid in full today. In an alimony buy-out, a lump sum is given to compensate the receipt all-at-once instead of waiting for the string of periodic payments.
In fancier language, the alimony buy-out is a math formula known as a “present value“. The calculation of the total of the string of payments is the easier part; it’s amount times duration. The calculation for the “discount” is the harder part. The “discount” is the percentage deduction to reduce the string of payments into its value all-at-once, today.
Aren’t you glad Easy Soft has alimony buyout software so that you don’t have to do this on your own?
Included in Easy Soft’s “Divorce Financials Software” is an alimony buyout calculator. Perhaps you are looking for an estimated alimony buyout, early in the divorce settlement negotiations. Or perhaps you have a report from the opposing party, and you’re interesting in spinning up to five alimony buyout computations, side-by-side.
Performing the alimony buyout computation takes on value when it is readily available for you to consider how it might fit into the overall divorce financials settlement. For example, will your client be awarded a stream of payments that she never collects in full or will she get to keep all of the house equity, outright? Only when you have Easy Soft’s alimony buyout software will you be able to insert the buyout figure into the equitable distribution mix to maximize your client’s financial position.
Easy Soft’s alimony buyout software is so indispensable that there’s even a divorce financials App version for your smart phone and tablet. We don’t want you to find yourself in divorce settlement negotiations without it.
And, who knows? By the time you play around enough with Easy Soft’s Divorce Financials Software you might decide that you do like math, after all.