If you are in the midst of the Georgia divorce process and your family law attorney has let you know that you will likely receive alimony from your spouse, you might be wondering what your options are in terms of receiving the payment. Of course the advice of your divorce lawyer will be critical since it will be specifically tailored to your unique situation, but there are some general principles you should know when deciding between periodic and lump sum alimony payments.
Periodic Georgia Alimony Payments
Depending on the type of alimony payments you receive (temporary, permanent, or rehabilitative), and depending on your financial situation at the time of your divorce, periodic payments may be your best bet:
- Generally, periodic alimony payments in Georgia are made on a monthly basis.
- If temporary, they will be made until the divorce ends.
- If permanent, they will be made until the recipient dies or remarries.
- If rehabilitative, payments will be made until a specified occurrence or date.
- In terms of taxes, periodic alimony in Georgia can be quite complex, both in terms of how and when you may deduct or state them as income. Consult not only with your attorney but a tax professional you trust regarding how periodic alimony may affect your tax situation.
Lump Sum Alimony Payments
Here are the main aspects of Georgia lump sum alimony payments:
- Lump sum alimony payments are also known as “alimony in gross”.
- One-time payment that is generally still made even if the recipient dies or remarries.
- There may be a tax advantage in receiving lump sum over periodic payments.
- Many times, the payment ends up being less overall than with periodic payments.
- However, taking into consideration the possibility of investing the lump sum amount, it still may be a better decision financially.
The best way to determine which is right for you is to work closely with your Georgia divorce and alimony lawyer as well as with your financial advisor. That way you can make the best decision for you while working within Georgia alimony law. To schedule a consultation with one of our divorce lawyers in Atlanta GA, please fill out the brief form on this page and we will be in touch with you shortly!