Periodic and Lump Sum Alimony Payments in Georgia

Experienced Georgia Divorce & Family Law Attorneys

Alimony, or spousal support, is payment from one spouse to the other. Alimony in Georgia can be awarded to either the husband or wife, and are not dischargeable in bankruptcy. Georgia alimony payments can be temporary, permanent or rehabilitative.

Temporary alimony is paid during the pendency of the divorce suit. Once the divorce is final, temporary alimony payments will cease and the parties will follow the Final Judgment and Decree of Divorce, which may award permanent alimony, rehabilitative alimony or no alimony at all. Permanent alimony is generally paid until the death or remarriage of the recipient spouse. Generally speaking, Georgia courts have been awarding permanent alimony less often than in the past because the prevailing view is that alimony should be rehabilitative or transitional. Rehabilitative alimony seeks to give the dependent spouse an opportunity to become self-supporting. This could mean the opportunity to go back to school or to find gainful employment. Courts generally award permanent alimony in cases where the recipient spouse is unable to work because of age or health.

Periodic Alimony Payments in Georgia

GA alimony can be made in periodic payments or as a lump sum. Periodic payments of alimony are usually made on a monthly basis for a certain amount of time. Periodic payments of temporary alimony will generally cease at the conclusion of the divorce, and permanent alimony made in periodic payments usually ends upon the death or remarriage of the recipient spouse. On the other hand, rehabilitative alimony paid periodically will end upon the occurrence of an event or on a date certain. Periodic alimony can always be modified by the court if there is a substantial change in circumstances.

For tax purposes, the spouse making periodic alimony payments in Georgia can generally deduct the payments and the recipient spouse would count those payments as income. However, if alimony payments decrease or terminate during the first three calendar years, individuals may be subject to the alimony recapture rule. This is a very technical tax rule in which the individual paying alimony has to include as income, in the third year, part of the alimony payments that he or she had deducted in previous years. Similarly, the recipient spouse would deduct in the third year part of the alimony payments that were previously included as income.

Lump Sum Alimony Payments in Georgia

Lump sum alimony, or alimony in gross, is a one-time, fixed payment that is made regardless of circumstances that would normally end periodic alimony payments. For example, lump sum alimony would generally be paid even if the recipient dies or remarries. The obligation of the individual making alimony payments in Georgia ends upon the lump sum payment, which is usually made in lieu of a property settlement. Depending on the way it is structured, lump sum alimony can provide a tax advantage to the individual making the payment.

Often, the amount of GA alimony paid in a lump sum payment is less than it would be if paid in periodic payments but the recipient spouse has the benefit of the current value of the money and an opportunity to invest it. For example, if an individual receives $20,000 as a lump sum payment, they can invest it and it will not be affected by economic factors such as inflation. On the other hand, if they were paid $200 per month over 10 years, the value of that money would likely be less. for as time progressed as there is little opportunity to invest the funds.

  Getting Started

If you are dealing with a divorce or alimony situation in Georgia, we advise you to speak with one of our Atlanta divorce and alimony lawyers sooner rather than later. The process can be intense and sometimes intimidating, and the help of an experienced divorce attorney will be invaluable in helping you protect your interests.  For a typical alimony payment situation, our law firm retainer begins at $2,500.00.  To talk with one of our experienced family law attorneys about representing you, either fill out the brief form to your left or give us a call.  For additional contact information and driving directions to our firm please visit our Contact Page.  Thank you and we look forward to working with you.