Alimony In Gross

When people hear the word “alimony,” they often think about one former spouse sending the other a check every month, reopening the resentments that led the couple to divorce in the first place. Most likely, though, you will not have to pay alimony for as long as you think you will. Even if your ex-spouse was out of the workforce for most of your marriage, you might be able to reduce your alimony obligations by letting your ex keep valuable marital assets, and if your ex still needs alimony, the amount will be based on the assumption that your ex will return to the workforce unless she has already reached retirement age or cannot work because of a disability. When possible, the courts order couples to divide their marital assets all at once, even when this means ordering one spouse to pay the other a lump sum. This lump sum is sometimes called alimony in gross, and the difference between an equalizing payment and alimony in gross can be a matter of semantics. For help negotiating for a fair division of marital property, one that might include a payment of alimony in gross, contact a Birmingham divorce lawyer.

A Former Couple’s Messy Finances Can Complicate Equalizing Payments

Sometimes lump sum alimony is enough to keep both spouses in a stable financial situation after the divorce. For example, the wife might keep the marital home, refinancing the mortgage in her name alone, and she might use the cash out refinance to pay the husband for his share of the home equity. The alimony in gross, plus his employment income, might make it feasible for the husband to buy a new house, and the wife might easily be able to keep up with the mortgage payments and rebuild equity in the former marital home, thanks to her employment income. This scenario is only possible if the couple was financially stable during the marriage, and both spouses have steady jobs.

Most recently divorced couples are in messier financial situations, though. Larry and Lisa divorced after a long separation, during which Lisa remained in Alabama while Larry relocated to Virginia with his girlfriend. Neither spouse owned their residence. Larry did not even own his furniture; he was paying for it as part of a lease to own arrangement. The court ruled that Larry should pay Lisa alimony in gross, but it was hard to tell how much. Larry argued that it was difficult for him to pay, since while the divorce was pending, his car had reached the end of its usability and he had financed another car, in which he barely had any equity. This major debt reduced the net value of Larry’s property.

Contact Peeples Law About Divorce in Lean Times

A Birmingham family law attorney can help you avoid paying excessive alimony in gross if you have taken on a new debt out of necessity since your spouse filed for divorce.  Contact Peeples Law in Birmingham, Alabama today to schedule a consultation.

Source:

scholar.google.com/scholar_case?case=11531184626369535105&q=divorce+kitchen&hl=en&as_sdt=4,61,62,64&as_ylo=2015&as_yhi=2025