Payment options for Louisiana spousal support

Alimony may be awarded before and after the end of a Baton Rouge marriage. Alimony pendente lite is a spousal support agreement for married couples who are separated but not yet divorced. Spousal support paid following divorce can be temporary or permanent, although temporary alimony is more likely today than in years past, when spousal earnings were not as equal.

In Louisiana, spousal support is based on need and fault. A recipient spouse may not have the financial resources or earning ability to meet basic needs after a dissolution of marriage. In fault-based divorces, a spouse may be ordered to pay spousal support as punishment for marital misconduct like infidelity or abuse.

Many spousal support payments are made monthly, but that is not the only option you have for satisfying an alimony agreement. A less common arrangement is when the payer spouse provides spousal support in a single payment. Lump sum payments have advantages for payers and recipients.

Payers are freed from an ongoing support obligation. The total must be calculated to include the full amount of support, which may be considerable. By receiving support all at once, recipients may take advantage of investment opportunities they would have missed by receiving monthly payments.

Payers don’t have to remember to support payments. Recipients never have to worry a payment will be late or not show up at all. A lump sum alimony payment also eliminates future disputes and support modification litigation.

However, both payers and recipients must consider the tax implications of paying or accepting what is likely to be a significant amount of money. Alimony is deductible for payers but, for recipients, spousal support is considered income.

Alimony paid through a property settlement might offer considerable tax advantages, but not all spousal support may be classified this way. A family law attorney can explain circumstances under which this arrangement is possible.

Source: FindLaw, “Avoid Alimony Monthly Payment Programs” Oct. 01, 2014