Wording for lump sum alimony

[Haydukelv123]

What is the name of your state (only U.S. law)? Nevada

I am filling a joint petition for divorce on my own and need some help. I want to make a one-time, lump sum payment to my spouse for spousal support. This isn't an option available on the form, but I was told by the family law office that I can add it in. How do I word it? I want to make sure it is accepted by the judge and the IRS. Thank you for any help.

 

[LdiJ]

What is the name of your state (only U.S. law)? Nevada

I am filling a joint petition for divorce on my own and need some help. I want to make a one-time, lump sum payment to my spouse for spousal support. This isn't an option available on the form, but I was told by the family law office that I can add it in. How do I word it? I want to make sure it is accepted by the judge and the IRS. Thank you for any help.

The IRS is going to view any lump sum as a property settlement rather than alimony.

 

[tranquility]

The IRS is going to view any lump sum as a property settlement rather than alimony.

But, what if it isn't a property settlement?

There is no rule requiring periodic payments for it to be alimony. As long as all the requirements are satisfied, it can be alimony. That being said, a lump sum payment would certainly be looked at as a property settlement, especially if there were some tax advantages to the treatment. I guess my advice to the OP is to make sure property is divided appropriately in the instrument and be able to show the lump-sum is in addition to a fair division and not a part of it.

 

[LdiJ]

But, what if it isn't a property settlement?

There is no rule requiring periodic payments for it to be alimony. As long as all the requirements are satisfied, it can be alimony. That being said, a lump sum payment would certainly be looked at as a property settlement, especially if there were some tax advantages to the treatment. I guess my advice to the OP is to make sure property is divided appropriately in the instrument and be able to show the lump-sum is in addition to a fair division and not a part of it.

I can agree that if all property is properly divided it might be easier to convince the IRS that lump sum alimony was actually alimony, but in an equitable division state property settlements are not automatically a 50/50 split.

 

[Haydukelv123]

Some more info might help. The money for the lump sum payment will come from some inherited savings bonds, which are not considered community property. All other property and assets are going to be split equally.

 

[Zigner]

That sounds an awful lot like a property settlement to me.

 

[LdiJ]

Some more info might help. The money for the lump sum payment will come from some inherited savings bonds, which are not considered community property. All other property and assets are going to be split equally.

How big will this lump sum be?...and why is it so important to you to do a lump sum?

 

[Just Blue]

How big will this lump sum be?...and why is it so important to you to do a lump sum?

Lump = < than Future $ ?

 

[tranquility]

That sounds an awful lot like a property settlement to me.

Why? The fact is is separate property seems to make it more likely to be alimony to me.

 

[tranquility]

The reality is the reality. There is no legal restriction on having a lump sum alimony being alimony. None.

I understand the other's suspicion. I don't think this forum is the proper place to determine as to if this is alimony. You need a tax professional with access to all the facts and who will help you make a determination.