One of the common complaints you here from people who are divorced is about alimony. Obviously the person paying complains the loudest but even the recipient can be unhappy, especially if the payer is unreliable. One option is to use settlement statement software like Divorce Financials to calculate a lump sum buyout and get all the alimony paid up front.
How Much Is Alimony Worth?
The big question is: how much should be offered as the lump sum? It’s not as simple as multiplying $X per month times the Y months of the alimony agreement. Money loses value over time due to inflation, so that $800 per month today isn’t worth the same as $800 per month in ten years. Calculation of the present value of future payments is a complex endeavor that involves a number of assumptions. One of the many advantages of using family law software to calculate a buyout is not only does the computer do the math, but you have proof that the amount being offered is based on calculations rather than just pulled out of the air.
How Do You Fund An Alimony Lump Sum?
While a lump sum may seem nice on paper, how many of us can just write a check for tens of thousands of dollars? It’s one thing to have a fair number; it’s another to figure out where that money comes from.
The most common solution is to include the lump sum as part of the property settlement. For example one spouse might get the house in return for the other not paying alimony. Of course you want to be sure the final settlement is fair, which is why you’ll want to use Divorce Financials to calculate not only the alimony lump sum, but also the value of all assets so a fair property agreement can be created.
Find Out For Yourself
Don’t take our word for how useful Divorce Financials is. Download a free family law software demo and try it! Once you see how easy divorce settlement can be, you can buy the full product license for a very affordable price.
Be sure to look at our other legal practice management software products while you are looking around the site, such as our NY and NJ specific divorce software.