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Thursday, July 7, 2011

What is the difference between Alimony in Gross and Periodic Alimony?

Alimony in gross gives a present value to a spouse’s rights to alimony and is similar to a division of property. Alimony in gross cannot be modified after 30 days from the final divorce decree being entered and remarriage of the receiving party does not entitle the paying party to reimbursement. Additionally, the court does not have to consider the receiving party’s separate estate in determining the amount and the lump sum payment may be nontaxable.

Periodic alimony payments are made over time and differ from alimony in gross in several ways. First, the amount can be modified upon a showing of a material change in circumstances for either party after the divorce. Second, periodic alimony terminate upon remarriage or cohabitation of the receiving party or upon death of either party. Finally, periodic alimony is a tax deduction for the paying spouse and income for the receiving spouse.

This comes from a post by Melinda Parks. To see the original posting follow this link:  http://mjparkslaw.wordpress.com/
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